Bitcoin fell sharply yesterday following the release of the Fed minutes. According to technical analysis by NewsBTC’s Aayush Jindal, BTC could rally, but rallies could be limited to $45,000.
Bitcoin Drops 5%
Bitcoin started a sharp decline yesterday evening after the release of the minutes, which emphasized the Fed’s earlier and faster rate hikes. Bitcoin slumped well below the $46,000 and $45,000 levels. A bottom was formed near $42,505 and the price is now consolidating losses. BTC is now 23% of the drop from $47,066 to $42,505. It is facing resistance near the 6 Fib retracement level.
Initial resistance on the upside is near the $44,000 level. The first major resistance is near the $44,800 level. The 50% Fib retracement level of the key drop from the $47,066 high to $42,505 high is also near the $44,800 level. There is also a key bearish trend line forming with resistance near $46,800 on the hourly chart of the BTC/USD pair.
44. $800 Level Is Important
A clear move above the $44,800 resistance zone could send the price towards the trendline. The next major resistance is near the $45,600 pivot area. A close above $45,600 is needed for a fresh rise in the short term.
Will Bitcoin Drop More?
According to Jindal, if Bitcoin fails to rise above $44,800, it may continue to move lower. There is immediate support near the $43,000 region. The first major support is near $42,500. A downside break below the $42.500 level could push the price down further. In the stated case, the price could drop to the $41,000 level. The next major support is near the $40,000 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 well below the 50 level.
- Main Support Levels – 43,000 then $42,500
- Main Resistance Levels – $44,000, 44,800 and $45,600