Bitcoin deepened its decline yesterday by falling below the $47,500 support zone. According to technical analysis by NewsBTC’s Aayush Jindal, BTC may rally, but upsides may be limited above $47,500.
Bitcoin Continues Its Fall
Bitcoin failed to rise above $48,800 yesterday and started a fresh decline. The decline accelerated below the $47,000 level. 46. A bottom was formed near $120 and the price is now consolidating losses. The first major resistance is near the $47,200 level.
There is also a key bearish channel forming with resistance near $47.150 on the hourly chart of the BTC/USD pair. The trend line is near the 50% Fib retracement level of the decline from the $48.123 high to $46.120 low.
47. 500 Level Matters
A clear move above the $47,500 resistance zone could start a fresh increase. The next major resistance is near the $48,500 level, where the bears could emerge. Any further gains could send the price towards the $50,000 level.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to rise above $47,200, it may continue to move lower. An immediate support is near the $46,200 zone. The first major support is around $46,000. A downside break below the $46,000 level could push the price towards the $45,500 support. Any further losses could likely lead the price towards the $45,000 support zone, below which there is a risk of a larger decline in price.
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 40 level.
- Main Support Levels – 46.200 then $45.500
- Main Resistance Levels – $47.200, 47.500 and $48.500