This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Bitcoin price experienced a significant drop after reaching close to $45,000. The decline amounted to over 8%, but there are signs of bullish activity above the $40,000 mark. The price is currently trading below $43,500 and the 100 hourly Simple Moving Average, indicating bearish tendencies.
During the downward correction, a key bullish trend line with support near $43,500 was broken. The BTC/USD pair could find strong buying interest around the $40,000 zone. Despite the decline, the bulls are defending the $40,000 support level and the 76.4% Fibonacci retracement level.
Bitcoin is attempting a recovery wave, but it is facing resistance near the $42,400 level. If the price manages to break above the $43,200 resistance, it could gain bullish momentum and potentially rise towards $44,000. A close above the $44,000 resistance could trigger a strong upward move, with the next key resistance level around $44,200 and a potential rise towards $45,000.
However, if Bitcoin fails to surpass the $43,200 resistance, it may experience another decline. Immediate support on the downside is expected near the $41,200 level, followed by a major support level near $40,500. A move below $40,000 could lead to further downsides, potentially dropping the price towards the $38,500 support level in the near term.
Technical indicators suggest a bearish trend, with the MACD gaining pace in the bearish zone and the RSI for BTC/USD falling below the 30 level.