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Bitcoin Price Turns Red And Could Revisit $40K

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Aayush Jindal

Key Highlights

  • Bitcoin price trimmed most gains after the spot ETF approval.
  • BTC traded below a key bullish trend line with support at $44,500 on the 4-hour chart.
  • The price could extend losses if it stays below the $44,000 resistance zone.
  • Ethereum is performing better and might aim for a move toward $2,750.

Bitcoin Price Technical Analysis

Bitcoin price peaked near the $49,000 level after the spot ETF approval by the SEC. BTC started a steady decline and traded below the $45,000 support zone.

Looking at the 4-hour chart, the price traded below a key bullish trend line with support at $44,500. There was a close below the $44,000 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

Finally, it tested the $41,400 zone and started a consolidation phase. If there is a fresh increase, Bitcoin could face resistance near $43,800 or the 23.6% Fib retracement level of the downward move from the $49,096 swing high to the $41,404 low.

The next resistance is near $44,000. A successful close above the $44,000 level might start a decent increase. In the stated case, the price may perhaps rise toward the 50% Fib retracement level of the downward move from the $49,096 swing high to the $41,404 low at $45,250.

If not, the price might continue to move down. Immediate support is near the $41,400 level. The next major support is $40,500. Any more losses might send the price toward the $40,000 level.

Economic Releases

  • US Initial Jobless Claims - Forecast 207K, versus 202K previous.
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