Bitcoin Could Extend Its Drop To $41K While 100 Holds The Key

Bitcoin could extend its drop to $41K as the coin started a fresh decline and then failed to clear the $52,000 against the US dollar. The cryptocurrency is sliding and remains at risk of a drop towards $41K so let’s read more in our latest Bitcoin news.

BTC managed to recovery above $50K but then struggled to clear the $52,000 resistance with the price trading well below $50K and the 100 simple moving average. There’s also a key declining channel forming with the resistance of $49,220 on the 4-hour charts of the pair that will likely continue lower towards $41,000 in the near-term as bitcoin could extend its drop to that point.

Over the past week, the BTC price extended its decline below the $47K support zone, and the BTC/USD pair even tested the $44,000 support zone while settling well below the 100 simple moving average. The last rejection zone was near the $52K level before the prices dropped below $45K. then, the coin traded as low as $44,360 before it started correcting higher. It recovered above 23.6% retracement level from the downward move at $52,229 high to $44,360 low.

The price struggled to clear the $48,000 resistance but it also failed to surpass the 50% fib retracement level from the downward move at $52,229 high to $44,360 low. There’s also a key declining channel forming with the resistance of $49,220 on the 4-hour charts of the pair while BTC prepares to move lower and will test the $44,000 support zone. If there’s a downside break below the support of $44K, there are chances of more downsides towards the $41,000 support zone while the next major support is near the $40K level.

If BTC starts a fresh increase, the first key resistance level will be set at $48K with the main resistance forming near the channel upper trend line of $50K. Breaking above the channel resistance will open the doors for a decent increase above $50K with the next key resistance level nearing the $52K level above which the prices could rise towards the $55,000 level. The 4-hour MACD for the pair is showing some negative signs in the bearish zone while the 4-hour RSI is well below the 50 level. The major support level is set at $44K and the major resistance level is set at $50K.