Bitcoin price seems to be consolidating above the $46,000 level after Tuesday’s nearly 17% drop. According to technical analysis by NewsBTC’s Aayush Jindal, Bitcoin must cross $47,500 and $48,000 to start a steady rise in the short term. On the other hand, the first major support for Bitcoin is at $ 45,900.
- Bitcoin is facing a major resistance near the $47,500 and $48,000 levels.
- The price is still trading well below $48,000 and the 100 hourly simple moving average.
- There was a break above a connecting bearish trend line with resistance near $46,200 on the hourly chart of the BTC/USD pair (data from Kraken).
- If there is a close above the $48,000 resistance zone, the pair could start a decent increase.
Is Bitcoin Aiming to Recover?
Bitcoin price remained stable above the $46,000 support zone after the massive drop a few days ago. The leading crypto asset is trading above the $46,000 support zone and below the $47,500 resistance.
There was a break above a connecting bearish trend line with resistance near $46,200 on the hourly chart of the BTC/USD pair. The recent upside was formed near $47,399 before the price started a downside correction. There was a break below the $47,000 area and the price settled below the 23.6% Fib retracement level of the recent rise from the $44,444 high to $47,399 high. The bulls are now holding the $46,000 support zone.
However, the price is still trading well below $48,000 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $47,000 level. The first major resistance is near the $47,500 level. The main hurdle is still near the $48,000 level. A close above the $48,000 level could start a decent increase in the near term.
Will Bitcoin (BTC) Drop?
The crypto community is also considering the bearish scenario. According to Jindal, if Bitcoin fails to break past the $48,000 resistance zone, it could continue its decline. An immediate support on the downside is near the $46,200 level.
The analyst points to the $45,900 level as the first major support. This is close to the 50% Fib retracement level of the recent rise from the $44,444 high to $47,399 high. The main support seems to be forming near the $45,500 level. If there is a downside break below the $45,500 support zone, the decline could extend to $44,000.
What About the Technical Indicators?
- Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now again above the 50 level.
- Major Support Levels – $46,200 followed by $45,500
- Major Resistance Levels – $47,000, 47,500 and $48,000
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