Bitcoin started a new low yesterday. There is a risk of a larger decline below $47,500 in the near term, according to technical analysis by NewsBTC’s Aayush Jindal.
Bitcoin Consolidates
Bitcoin failed to gain strength and started a new low yesterday. The pair traded below the $48,500 support zone and close to the 47,200 level. A local bottom was formed near $47,305 and the price is currently consolidating.
Bitcoin is currently trading below $48,000. An immediate resistance on the upside is near the $48,200 level. The first major resistance is near the $48,500 level. 23% of the decline from $52.111 to $47,305. The 6 Fib retracement level is also near $48,500. The next key resistance could be $49,800.
49. 800 Level Matters
Besides, the 50% Fib retracement level of the recent decline from the $52.111 high to $47,305 low is also near the $49,700 zone to act as resistance. A clear move above the $49,800 resistance zone could start a fresh increase. The next big stop for the bulls is likely near the $51,200 level.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to rise above $49.200, it may continue to move lower. An immediate support is near the $47,500 zone. The first major support is near $47,200. A downside break below the $47.200 level could push the price towards the $46,500 support. Any more losses could lead the price towards the $45,500 support zone.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is slowly losing momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 40 level.
- Main Support Levels – 47.200 then $46.500
- Main Resistance Levels – $48.200, $48.800 and $49.800
