Bitcoin Breaks Key Support, Why BTC Could Dive Below $40K

Feb 14, 2022
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Bitcoin began a contemporary decline from effectively above the $44,000 stage in opposition to the US Greenback. BTC broke the $42,500 assist and stays at a threat of extra downsides.

  • Bitcoin traded beneath an vital assist zone at $42,500.
  • The value is buying and selling beneath $42,500 and the 100 hourly easy shifting common.
  • There’s a key bearish development line forming with resistance close to $42,200 on the hourly chart of the BTC/USD pair (information feed from Kraken).
  • The pair might decline additional if it fails to get better above the $42,800 zone.

Bitcoin Worth Extends Decline

Bitcoin worth did not clear the $45,500 resistance and began a significant decline. BTC traded beneath the $43,200 and USD 42,500 assist ranges to maneuver right into a short-term bearish zone.

There was additionally an in depth beneath the $42,50 stage and the 100 hourly easy shifting common. A low was shaped close to $41,573 and the value is now consolidating losses. A direct resistance is close to the $42,000 stage. The primary main resistance is close to the $42,200 stage.

Moreover, there may be additionally a key bearish development line forming with resistance close to $42,200 on the hourly chart of the BTC/USD pair. The subsequent key resistance could possibly be $42,500 or the 23.6% Fib retracement stage of the latest decline from the $45,900 excessive to $41,573 low.

Bitcoin Price

Supply: BTCUSD on TradingView.com

The principle resistance appears to be forming close to the $42,850 stage or the 100 hourly easy shifting common. A transparent transfer above the 100 hourly easy shifting common would possibly ship the value to $43,750. It’s close to the 50% Fib retracement stage of the latest decline from the $45,900 excessive to $41,573 low.

Extra Losses in BTC?

If bitcoin fails to begin a contemporary enhance above $42,850, it might proceed to maneuver down. A direct assist on the draw back is close to the $41,600 zone.

The subsequent main assist is seen close to the $41,200 stage. If there’s a draw back break beneath the $41,200 assist, the value might begin a significant decline in direction of the $40,000 stage.

Technical indicators:

Hourly MACD – The MACD is now gaining tempo within the bearish zone.

Hourly RSI (Relative Energy Index) – The RSI for BTC/USD is now beneath the 50 stage.

Main Help Ranges – $41,600, adopted by $41,200.

Main Resistance Ranges – $42,200, $42,850 and $43,000.

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