Bitcoin

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.

With Bitcoin price falling to the low $40,000 range, debate has picked up on if the once trending cryptocurrency’s bull run is now over. There’s no truly telling for sure, however, this time is very different than the last bull market. Why? Because Bitcoin price just lost a key level that never once saw a weekly close below during the last market cycle. Could this be it for the bullish impulse – long before predictions of $100,000 or more per coin are ever reached? Crypto Cycle Could Conclude With Key Level Lost From Past Trends Cryptocurrencies are a highly speculative asset class, regardless if adoption is picking up or not. Sure PayPal is now game, as is Visa and an assortment of others, but the volatile assets have a long road of price discovery ahead. Although most recent crypto participants only have known “always up” as the direction of the trend, things have recently taken a turn downward. BTC has lost the middle Bollinger Band or 20-week SMA  | Source: BTCUSD on TradingView.com But is this “the top?” It’s hard to say. One thing for certain, however, is that Bitcoin price has now lost the middle Bollinger Band – also the 20-week SMA. Passing through the mid-BB in and of itself can be a powerful buy or sell signal. Related Reading | Bitcoin Dominance Dives To Lowest In Years, Altcoin Season Is Finally Here However, the fact that during the last bull run Bitcoin weekly never closed below it, it could be a sign that the structure of the bull market has been broken.  Never once was there a meaningful weekly close below the mid-BB  | Source: BTCUSD on TradingView.com Will Bitcoin Price Snap Back Into A Bull Phase? What To Look For The Bollinger Bands are a tool created by legendary trader John Bollinger. The tool has a variety of uses, namely measuring the volatility in the price action of assets like Bitcoin. The technical analysis indicator consists of a 20-session SMA as mentioned, and two standard deviations of that moving average that widen and contract based on volatility. When they tighten or “squeeze” it can be a sign a massive move is coming. These large moves can begin or continue a trend after a long pause. The recent peak has more similarities with 2018 and 2019 than 2017  | Source: BTCUSD on TradingView.com Bitcoin weekly timeframes have tightened during the recent consolidation phase, and a breakout has started. However, the direction appears to be down according to the middle-Bollinger Band. Passing through the middle-band typically results in several touches of the bottom band to find support. Like last major “tops” the bottom bands widened to extremes, but when they began to tighten back up, the trend was over. A rounding of the top bands also is a sign of the tools suggesting a break in the bull run. Related Reading | All About The Bollinger Bands As for when Bitcoin is ready to turn bullish again, it could be worth waiting for the cryptocurrency to reclaim the middle-BB, which outside of Black Thursday and now, have always been a sign of a bull rally in the making. With Bitcoin now below the key level, the case for a bear phase, however, is now just as strong. Featured image from iStockPhotos, Charts from TradingView.com

Bitcoin price is likely forming a double bottom pattern near the $42,150 zone against the US Dollar. BTC is showing positive signs and it could climb towards $47,000. Bitcoin is finding a strong buying interest above the $42,000 and $42,150 support levels. The price is still trading well below $47,000 and the 100 hourly simple moving average. There was a break above a connecting bearish trend line with resistance near $44,500 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely forming a short-term double bottom pattern with support near $42,150. Bitcoin Price Holds $42K Bitcoin made another attempt to surpass the $42,000 and $42,150 support levels. However, the bulls were active above the $41,500 level. The recent swing low was formed near $42,157. It seems like the price is forming a short-term double bottom pattern with support near $42,150. It recently started a steady increase above the $44,000 resistance levels. There was a break above the 23.6% Fib retracement level of the downward move from the $49,827 high to $42,157 low. Moreover, there was a break above a connecting bearish trend line with resistance near $44,500 on the hourly chart of the BTC/USD pair. Source: BTCUSD on TradingView.com The pair is now consolidating above the trend line and $44,000. An immediate resistance is near the $45,000 level. The first key resistance is near the $46,000 level. It is close to the 50% Fib retracement level of the downward move from the $49,827 high to $42,157 low. Any more gains could lead the price towards the $47,000 resistance zone. The 100 hourly simple moving average is also sitting near $47,000 to act as a hurdle in the near term. Fresh Drop in BTC? If bitcoin fails to clear the $45,000 and $46,000 resistance levels, there is a risk of a fresh decline. An initial support on the downside is near the broken trend line and $44,000. The main support is now forming near the $42,150 level (the double bottom zone). A downside break below the $42,150 and $42,000 support levels could spark another strong decline in the near term. Technical indicators: Hourly MACD – The MACD is slowly gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. Major Support Levels – $44,000, followed by $42,000. Major Resistance Levels – $45,000, $46,000 and $47,000.