- Bitcoin (BTC) trading below $41,200 poses a challenge for bulls, hinting at a struggle to sustain upward momentum.
- If Bitcoin fails to rise above $41,700, there is a risk of continued downward movement.
Bitcoin (BTC) is experiencing a potential downturn following its significant eight-week surge, propelling from $26,866 to an impressive $44,543. As of now, the largest cryptocurrency has displayed a 2% dip in the last 24 hours, with its current value resting below $41,200, according to CoinMarketCap.
Despite multiple attempts to breach the $45,000 resistance barrier, Bitcoin has struggled to sustain upward momentum. The latest setback saw BTC unable to surpass the $44,600 resistance, forming a rejection pattern after reaching a peak of $44,543 on December 9. This initiated a renewed decline, slipping below the $40,800 level and currently trading under $41,200, accompanied by a noticeable breach of the 100-hourly simple moving average.
Bitcoin (BTC) Will Hit $43,000?
According to the daily price chart, the formation of a crucial bearish trend line indicates a potential challenge with resistance around $41,300 on the BTC/USD hourly chart. Immediate obstacles for Bitcoin lie around the $41,650 level, with a more significant hurdle at $41,900.
A breakthrough above $41,300 could signal a positive turn, setting the stage for a gradual climb. The subsequent key resistances stand at $41,700 and $42,550, with a decisive move above the latter potentially paving the way for a test at $43,000.
However, if Bitcoin fails to breach the $41,700 resistance, a continuation of the downtrend is possible. Initial support is anticipated at $40,750, aligning with the recent swing low. Further downside risks loom as the cryptocurrency approaches the $40,200 mark, with the potential for additional losses. In a more bearish scenario, a drop toward the $39,500 support is possible in the short term.
Despite the current market challenges, investors are optimistic about the upcoming Bitcoin halving event, which will inject a positive catalyst into the largest cryptocurrency.
