Bitcoin price is facing hurdles near the $46,000 zone. With the denial of Litecoin – Walmart news yesterday, Bitcoin managed to protect $ 43,500, even though it experienced a hysterical sales wave. NewsBTC’s Aayush Jindal says that if BTC continues to struggle near the $46,000 zone, it could start a massive drop. According to Jindal’s technical analysis:
- Bitcoin is facing a major resistance near the $45,600 and $46,200 levels.
- The price is now trading below $45,500 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $46,000 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair must clear the $46,000 resistance zone to start a steady rise in the near term.
Bitcoin Should Clear $46,000
With the Litecoin denial yesterday, Bitcoin price extended its decline below the $45,000 level. BTC even declined below the $44,200 support level and settled below the 100 hourly simple moving average. However, there were no more losses below $43,500. A low was formed near $43,374 and the price started a steady recovery. There was a break above the $44,200 resistance level. The price broke the 50% Fib retracement level of the recent decline from the $46,879 high to $43,374 high.
It is currently facing strong resistance near $45,500 and the 100 hourly simple moving average. The 61.8% Fib retracement level of the recent decline from the $46,879 high to $43,374 low is also acting as a resistance near the $45,550 level. The main resistance is still near the $46,000 area. To move into a positive zone, Bitcoin needs to clear the 100 hourly SMA, the trendline zone and $46,000. The next major resistance is formed near the $47,350 level, above which the price could rise towards the key $48,500 resistance in the near term.
Will Bitcoin Drop More?
If bitcoin fails to break past the $46,000 resistance zone, it could continue its decline. An immediate support on the downside is near the $44,600 level.
The first major support is near the $44,200 level. The next key support seems to be forming near the $43,400 level. If there is a downside break below the $43,400 support zone, the price could extend its decline. The next major support on the downside could be $42,000.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD is slowly losing momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just above the 50 level.
- Major Support Levels – $44,200 followed by $43,400
- Major Resistance Levels – $45,550, $46,000, and $46,200
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