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    Bitcoin Breaks Key Support, Here’s Why BTC Could Dive Below $40K

    Bitcoin price failed to stay above the key $42,150 support zone against the US Dollar. BTC is declining and it remains at a risk of a sharp decline below $40K.

    Bitcoin failed to stay above the main $42,000 and $42,150 support levels.
    The price is now trading well below $45,000 and the 100 hourly simple moving average.
    There is a new major bearish trend line forming with resistance near $44,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    The pair is likely to continue lower below the $40,000 support levels in the near term.

    Bitcoin Price Breaks Double Bottom
    Bitcoin started a decent recovery from the $42,000 and $42,150 support levels. However, the bulls failed to push the price above the $46,000 resistance zone.
    As a result, the price started a fresh decline below the $44,000 level. The bears were able to push the price below the main $42,000 and $42,150 support levels (double bottom zone). It is now trading well below $45,000 and the 100 hourly simple moving average.
    Bitcoin tested the $40,500 support zone and it is showing a lot of bearish signs. An initial resistance is near the $41,800 zone. It is near the 23.6% Fib retracement level of the recent decline from the $45,774 high to $40,472 low.
    There is also a new major bearish trend line forming with resistance near $44,000 on the hourly chart of the BTC/USD pair. An intermediate resistance is near the $43,200 zone. It is close to the 50% Fib retracement level of the recent decline from the $45,774 high to $40,472 low.

    Source: BTCUSD on TradingView.com
    A successful close above the $43,200 and $44,000 levels could open the doors for a decent recovery in the coming sessions. The next major resistance sits near the $46,000 level.
    More Losses in BTC?
    If bitcoin fails to clear the $43,200 and $44,000 resistance levels, there is a risk of more losses. An initial support on the downside is near the $40,500 level.
    The main support is now forming near the $40,000 zone. A downside break below the recent low and $40,000 could spark another sharp decline in the near term. The next key support could be $36,500.
    Technical indicators:
    Hourly MACD – The MACD is now gaining pace in the bearish zone.
    Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 30 level.
    Major Support Levels – $40,500, followed by $40,000.
    Major Resistance Levels – $42,000, $43,200 and $44,000.

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