Bitcoin price analysis: BTC faces potential declines to $40k

The BTC/USD brace has traded astatine lows adjacent the cardinal enactment of $46,300, with the method outlook suggesting further losses

The benchmark cryptocurrency is trading astir $47,100 astatine clip of writing, astir 2% and 4.8% down successful the past 24 hours and week respectively. BTC/USD mightiness proceed to look short-term bearish unit aft this latest rejection, with antagonistic sentiment apt to summation arsenic marketplace dominance slips towards 40%.

In the lawsuit that caller selling occurs, Bitcoin could gaffe towards the $45,000 enactment level. If the terms falls beneath $45,000, it could vessel to $40,000, according to terms projections shared by a method analyst.

Bitcoin terms outlook

Bitcoin's downward determination follows the terms question towards the apex of a bearish triangle signifier formed connected the regular chart. The diminution beneath the triangle's enactment enactment has added downside pressure, with the nonaccomplishment to wide the $49,000 absorption portion implicit the play seeing BTC/USD determination to lows of $46,700.

BTC/USD regular chart. Source: TradingView

Although the cryptocurrency's terms remains successful an wide uptrend, bears look poised to retest the cardinal enactment level astatine $46,300. This determination would unfastened BTC/USD up to a imaginable gaffe towards the adjacent anchor astir the 0.236 Fibonacci retracement level of the plaything precocious from $29,501 to $50,505, presently located astatine $45,548.

If the terms breaks lower, past BTC bulls mightiness person to support caller gains astir the 0.382 Fib level ($42,481). There's a anticipation Bitcoin could interaction the 50-day moving mean ($41,552) and the 0.5 Fib level ($40,003).

These lows coincide with predictions made by method expert Kevin Wadsworth. In a caller interview with Kitco News, the co-founder of Northstar and Badcharts opined that though Bitcoin remained comparatively bullish, it could question enactment astatine the $40,000 level earlier rebounding to deed a caller high.

In the abbreviated term, bulls indispensable support the $46,300 enactment to clasp the vantage suggested by the regular RSI supra 50.

According to Wadsworth, BTC/USD mightiness spot caller buying unit if the terms breaks supra $51,000, with a caller rally apt to spot prices highest from astir precocious September to October.  If the script plays out, the expert predicts that BTC terms could deed $100,000 earlier the extremity of the year.