Bitcoin

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

Bitcoin price failed to stay above the key $42,150 support zone against the US Dollar. BTC is declining and it remains at a risk of a sharp decline below $40K.

Bitcoin failed to stay above the main $42,000 and $42,150 support levels.
The price is now trading well below $45,000 and the 100 hourly simple moving average.
There is a new major bearish trend line forming with resistance near $44,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to continue lower below the $40,000 support levels in the near term.

Bitcoin Price Breaks Double Bottom
Bitcoin started a decent recovery from the $42,000 and $42,150 support levels. However, the bulls failed to push the price above the $46,000 resistance zone.
As a result, the price started a fresh decline below the $44,000 level. The bears were able to push the price below the main $42,000 and $42,150 support levels (double bottom zone). It is now trading well below $45,000 and the 100 hourly simple moving average.
Bitcoin tested the $40,500 support zone and it is showing a lot of bearish signs. An initial resistance is near the $41,800 zone. It is near the 23.6% Fib retracement level of the recent decline from the $45,774 high to $40,472 low.
There is also a new major bearish trend line forming with resistance near $44,000 on the hourly chart of the BTC/USD pair. An intermediate resistance is near the $43,200 zone. It is close to the 50% Fib retracement level of the recent decline from the $45,774 high to $40,472 low.

Source: BTCUSD on TradingView.com
A successful close above the $43,200 and $44,000 levels could open the doors for a decent recovery in the coming sessions. The next major resistance sits near the $46,000 level.
More Losses in BTC?
If bitcoin fails to clear the $43,200 and $44,000 resistance levels, there is a risk of more losses. An initial support on the downside is near the $40,500 level.
The main support is now forming near the $40,000 zone. A downside break below the recent low and $40,000 could spark another sharp decline in the near term. The next key support could be $36,500.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 30 level.
Major Support Levels – $40,500, followed by $40,000.
Major Resistance Levels – $42,000, $43,200 and $44,000.

bitcoin
Bitcoin (BTC) $ 65,365.51
ethereum
Ethereum (ETH) $ 3,424.97
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 593.78
solana
Solana (SOL) $ 134.43
staked-ether
Lido Staked Ether (STETH) $ 3,423.82
usd-coin
USDC (USDC) $ 0.999497
xrp
XRP (XRP) $ 0.489046
the-open-network
Toncoin (TON) $ 7.45
dogecoin
Dogecoin (DOGE) $ 0.121433
cardano
Cardano (ADA) $ 0.376038
shiba-inu
Shiba Inu (SHIB) $ 0.000018
avalanche-2
Avalanche (AVAX) $ 26.31
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 65,381.52
tron
TRON (TRX) $ 0.114173
chainlink
Chainlink (LINK) $ 13.62
polkadot
Polkadot (DOT) $ 5.71
bitcoin-cash
Bitcoin Cash (BCH) $ 392.08
uniswap
Uniswap (UNI) $ 9.93
litecoin
Litecoin (LTC) $ 72.96
leo-token
LEO Token (LEO) $ 5.72
wrapped-eeth
Wrapped eETH (WEETH) $ 3,564.88
dai
Dai (DAI) $ 0.999255
near
NEAR Protocol (NEAR) $ 4.81
matic-network
Polygon (MATIC) $ 0.541766
pepe
Pepe (PEPE) $ 0.000010
internet-computer
Internet Computer (ICP) $ 8.14
ethena-usde
Ethena USDe (USDE) $ 1.00
kaspa
Kaspa (KAS) $ 0.144804
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,435.40
ethereum-classic
Ethereum Classic (ETC) $ 22.57
monero
Monero (XMR) $ 171.82
fetch-ai
Fetch.ai (FET) $ 1.23
aptos
Aptos (APT) $ 6.80
render-token
Render (RNDR) $ 7.11
hedera-hashgraph
Hedera (HBAR) $ 0.076779
stellar
Stellar (XLM) $ 0.091312
mantle
Mantle (MNT) $ 0.810262
okb
OKB (OKB) $ 43.45
cosmos
Cosmos Hub (ATOM) $ 6.51
crypto-com-chain
Cronos (CRO) $ 0.092344
filecoin
Filecoin (FIL) $ 4.37
first-digital-usd
First Digital USD (FDUSD) $ 0.997506
blockstack
Stacks (STX) $ 1.61
immutable-x
Immutable (IMX) $ 1.51
arbitrum
Arbitrum (ARB) $ 0.780300
dogwifcoin
dogwifhat (WIF) $ 2.13
maker
Maker (MKR) $ 2,186.83
sui
Sui (SUI) $ 0.810117
optimism
Optimism (OP) $ 1.78