Bitcoin (BTC), which has risen from $26,866 to $44,543 in eight weeks, is showing signs of a possible downturn. According to CoinMarketCap, the largest crypto has dropped 2% in the last 24 hours, trading below $41,000.
Despite multiple attempts to break through the $45,000 resistance level, Bitcoin has struggled to maintain its upward momentum.
Following a peak on December 9, BTC was unable to break through the $44,600 resistance, forming a rejection pattern.
This triggered a new decline, with the price falling below $40,800 and now trading below $41,000, accompanied by a breach of the 100-hourly simple moving average.
On the BTC/USD hourly chart, the formation of a critical bearish trend line indicates potential challenges with resistance around $41,300. Immediate obstacles for Bitcoin are around the $41,650 level, with a larger hurdle at $41,900.
A break above $41,300 could signal a positive turn, paving the way for a gradual ascent. Following this breakthrough, key resistances include $41,700 and $42,550, with the latter potentially paving the way for a test at $43,000.
On the other hand, failure to break through the $41,700 resistance level may indicate that the downtrend will continue. Initial support is expected at $40,750, corresponding to the recent swing low.
As Bitcoin approaches the $40,200 mark, more downside risks emerge, with the possibility of additional losses. In a more bearish scenario, a short-term drop toward the $39,500 support is possible.
Traders and investors are keeping a close eye on these key levels to predict Bitcoin’s trajectory in the coming days.
