Bitcoin is still struggling below $41,500. BTC still faces more downside risks below the $39,000 support area.
Bitcoin is showing bearish signs below $40,500 and $41,500.
Prices are now below $40,500 and the 100-hour simple moving average.
A key bearish trendline has formed on the hourly chart of the BTC/USD pair, with resistance around $40,180 (from Kraken).
A significant break below the $39,000 support area could extend the decline.
Bitcoin prices continue to fall
Bitcoin remains below the key $41,500 resistance zone. BTC appears to be trading above $39,000 and below resistance at $41,500.
The last swing low formed near $39,600 before prices began an upward correction. Broke through the $40,000 resistance area. Prices climbed above the 23.6% Fibonacci retracement, falling from a high of $41,548 to a low of $39,600
However, prices face strong resistance around the $40,500 and 100-hour simple moving average. Bitcoin also struggled around the fibo 50% retracement level, falling from a high of $41,548 to a low of $39,600.
There is also a key bearish trend line forming on the hourly chart of the BTC/USD pair, with resistance around $40,180. Direct resistance to the upside is around $40,200.
The next key resistance level could be $40,380 and the 100-hour average. To start a recovery wave, prices must break through the $40,380 area and the 100-hour average. In that scenario, prices could rise to the resistance zone at $40,850. Any additional gains could set the stage for a near-term move toward the major $41,500 mark.
BTC losing more?
If bitcoin fails to break out of the $40,180 resistance zone, it could start another decline. Direct support on the downside is around $39,600.
The next major support level is around $39,180. A break below the $39,180 support zone could accelerate losses. In that case, the price could fall to $38,800 or even $38,500.
Technical indicators:
Hourly MACD -- MACD is now losing pace in the bearish zone.
RSI per hour (relative strength Index) -- BTC/USD's RSI is now below the 50 level.
Key support at $39,600 followed by $39,180.
Key resistance levels at $40,180, $40,400 and $41,500.