Bitcoin dropped sharply to below the $45,500 support level against the US Dollar. BTC might recover, however upsides may be limited beyond $45,000
- Bitcoin accelerated below the $45,500 key support zone.
- The daily simple moving average is at 100 hours and the price trades below $45,000
- A crucial bearish trend line is emerging with resistance at $46,800 (data feed Kraken).
- Although the bears may begin to recover, they could remain active around the $45,000 mark.
Bitcoin price drops 5%
Bitcoin prices failed to break the $47.500 resistance zone, and they began a significant decline. BTC dropped significantly below the $46,000- and $45,00 levels.
Bears drove the price to $43,500. The price has been consolidating its losses since a low was reached at $42,505. It trades at the $43,500 mark. It faces resistance at the 23.6% Fib Retracement level for the critical decline from $47,066 swing high and $42,505 low.
Bitcoin trading is below $45,000 as well the simple 100 hour moving average. A resistance level is at the near $44,000 area. Near the $44,800 mark is the first significant resistance to the upside.
Also, the Fib retracement levels of the critical decline from $47.066 swing highs and $42,505 lows are both close to the $44,800 threshold. On the hourly chart for the BTC/USD pair, there’s a key bearish trend line that is near the $44,800 level.
Source: BTCUSD at TradingView.com
Price could move towards the trendline if it moves clear above the $44,800 resistance area. Next is the pivot zone at $45,600. For a new increase, a close to $45,600 will be required.
BTC: More losses
Bitcoin could move lower if it fails to rebound above $44,800. The $43,000 support zone is the immediate support. Nearly $42,500 is the first major support.
Price could fall further if it falls below $42,500. If this is the case, then the price might fall towards $41,000 during the next sessions. Near the $40,000 mark is the next support.
Indicators technical
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.
Major Support Levels – $43,000, followed by $42,500.
Major Resistance Levels – $44,000, $44,800 and $45,600.