Bitcoin price continues to consolidate below the $46,000 zone, which has been an important level for Bitcoin since the last major drop. Although 1 billion dollars worth of Ethereum exit from a stock market received a positive reaction from the market last night and carried the price above $ 46,000, Bitcoin failed to hold on to that region and retreated back to the $ 44,000 region. According to technical analysis by NewsBTC’s Aayush Jindal, Bitcoin could start a major decline if it breaks the $44,200 support zone in the near term:
- Bitcoin is facing a major resistance near the $46,000 and $46,200 levels.
- The price is now trading well below $46,000 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $46,000 on the hourly chart of the BTC/USD pair (data from Kraken).
- If the pair fails to clear the $46,000 resistance zone, it could start a major decline.
Bitcoin Struggles Below $45,000
Bitcoin has not been able to gain strength above the $46,500 region since its massive drop in the past few days. Bitcoin, which started a new decline in the first hours of the day, fell to around $ 44,135. There was a break above the $45,000 resistance and the price broke the 50% Fib retracement level of the recent decline from the $47,399 low to $44,135 low. However, the price is facing a resistance near the $46,000 and $46,200 levels.
There is also a key bearish trend line forming with resistance near $46,000 on the hourly chart of the BTC/USD pair. The trend line is near the 61.8% Fib retracement level of the recent drop from the $47,399 low to $44,135 low.
Bitcoin, on the other hand, is currently trading well below $46,000 and the 100 hourly simple moving average. An immediate resistance on the upside is seen near the $45,750 level and the 100 hourly SMA.
The first major resistance is near the $46,000 level. The next major resistance is formed near the $46,200 level, above which the price could rise towards the key $47,400 resistance in the near term.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break past the $46,000 resistance zone, it may continue its decline. According to him, the first major support is near the $44,500 level. The main support seems to be forming near the $44,200 level. If there is a downside break below the $44,200 support zone, it could extend its decline. The next major support on the downside could be $43,000.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD has now dropped below the 50 level again.
- Major Support Levels – $44,500 followed by $44,200
- Major Resistance Levels – $46,000, 46,200 and $47,400
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