What Could Trigger A Sharp Decline

Bitcoin’s resistance to USD is at $48,000. BTC may fall significantly if it breaks below $46,000.

  • Bitcoin began a consolidation phase under the $48,500- and $48,000 resistance levels.
  • It is currently trading at $48,000, below the simple 100-hour moving average.
  • On the hourly chart for the BTC/USD pair, there is an apparent connecting bearish trend line with resistance at $47,000. (Data feed Kraken).
  • If the price of $48,000 is not reached, then there’s a chance that it will continue to decline.

Bitcoin price remains at risk

Bitcoin prices fell to $48,500 below their peak and began a new decline. BTC fell below $48,000 and $47.500 levels, causing it to fall into a bearish zone.

Below the $47,000 mark and below the simple moving average of 100 hours, the price fell. Before the upside correction began, a low of $45,530 was reached. Bitcoin recovered above $46,500 levels and $47,000 levels.

The Fib retracement level at 50% of the major decline, from $48,591 high swing to $45,530 low, was exceeded by the price. But, it failed to break through the $48,000 resistance area.

A connecting bearish pattern line is also visible on the hourly BTC/USD pairs chart. It forms resistance around $47,000. Trend line located near the 76.4% Fib level of the pivotal decline from $48,591 swing high, to $45,530 lower.

Bitcoin Price

Source: BTCUSD from TradingView.com

An increase could be initiated by a clear break above $48,000. Next is the $48,500 resistance level. In the short term, any further gains may push the price to the $50,000 mark.

BTC’s Latest Decline

It could move lower if bitcoin does not recover from $48,000. The $46,400 area is the immediate support. A support zone of $46,100 provides the initial major support.

Price could fall below $46,100 to push it towards $45,500. A further decline below $45,000 could lead to a bigger drop. The price could fall to $43,200 in the above scenario.

Technical indicators

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is below the 50 level.

Major Support Levels – $46,100, followed by $45,500.

Major Resistance Levels – $47,500, $48,000 and $48,500.

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