Bitcoin deepened its decline yesterday and revisited the $45,000 region. According to technical analysis by NewsBTC’s Aayush Jindal, BTC risks a sharp decline below the $46,000 support zone.
Bitcoin at Risk
Bitcoin deepened its decline yesterday and settled below the $46,500 level and the 100 hourly simple moving average. A low was formed near $45,707 and the price is now consolidating losses. 23% of the recent decline from $47,950 to $45,707. Tested 6 Fib retracement level.
Bitcoin is currently trading below $47,000 and the 100 hourly simple moving average. The first major resistance on the upside is near the $46,850 level. This is close to the 50% Fib retracement level of the recent decline from the $47,950 high to $45,707 high.
47. Level 000 Matters
There is also a key bearish trend line forming with resistance near $47.100 on the hourly chart of the BTC/USD pair. A clear move above the $47,000 resistance zone and the trend line could start a fresh increase. The next major resistance is near the $48,000 level. Any further gains could send the price towards the $48,500 level in the near term.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to rise above $47,000, it may continue to move lower. An immediate support is near the $46,000 region. The first major support is located around $45,800. A downside break below the $45.800 level could push the price down further. In the stated case, the price could decline to the $43,500 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 – $46,000 followed by $45,800
- Main Resistance Levels – $46.800, $47,000 and $47.100