Bitcoin continues its struggle to break above the $48,000 resistance. According to technical analysis by NewsBTC’s Aayush Jindal, BTC could drop heavily if there is a clear break below $46,000.
Bitcoin at Risk
Bitcoin failed to rise above $48,500 and started another decline. The decline gained momentum below the $47,000 level and the 100 hourly simple moving average. A low was formed near $45,530 before starting an upside correction. Bitcoin was able to recover above the $46,500 and $47,000 levels.
BTC settled above the 50% Fib retracement level of the low from the $48,591 high to $45,530 low. However, it failed to surpass the $48,000 resistance zone. There is also a connecting bearish trend line forming with resistance near $47,600 on the hourly chart of the BTC/USD pair. The trendline is 76% of the drop from $48,591 to $45,530. Close to the 4 Fib retracement level.
48. $ 000 Level Matters
A clear move above the $48,000 resistance zone could allow it to start a fresh increase. The next major resistance is near the $48,500 level. Any further gains could send the price towards the $50,000 level in the near term.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to rise above $48,000, it may continue to move lower. An immediate support is near the $46,400 zone. The first major support is near $46.100. A downside break below the $46.100 level could push the price towards the $45,500 support. Any further losses could likely trigger a larger decline below the $45,000 support zone. In the stated case, the price is likely to decline towards the $43,200 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is below the 50 level.
- Main Support Levels – 46.100 then $45.500
- Main Resistance Levels – $47.500, $48,000 and $48,500