What Could Trigger Another Decline

Bitcoin continued to fall below $44,000 against the US Dollar. BTC is still at risk for more downgrades, unless it breaks above $45,000

  • Bitcoin began a significant decline below its $45,500 support level.
  • The daily simple moving average is at the hourly low of $44,000.
  • On the hourly chart for the BTC/USD pair, there is a bearish continuation pattern with resistance around $43,500 (datafeed from Kraken).
  • A move higher than $44,000 could cause resistance for the pair.

Bitcoin’s Price is at Risk

The Bitcoin price began to fall below $46,500, $45,000 and $45,000 levels. BTC traded in a bearish territory and fell below $44,000.

Below the $43,500 and 100-hourly simple moving average, the price settled. The price fell to $43,500 and traded as low at $42,424. Now, it is consolidating losses over the $42,500 mark.

The $43,500 mark is the immediate resistance. The 23.6% Fib Retracement level is at the $43,500 level. This represents the drop from the swing high of $47.065 to low of $42,424 and it’s immediate resistance. A key bearish continuation pattern is also emerging with resistance close to $43,500 in the hourly charts of the BTC/USD currency pair.

Near the $44,500 mark is the first significant resistance to the upside. Next is resistance at the $44,750 area. This is close to the Fib level of the most recent fall from $47,065 high to $42,424 lowest.

Bitcoin Price

Source: BTCUSD from TradingView.com

Clear moves above the $44,750 resistance level could signal a solid recovery wave. Next major resistance will be at the $45,600 and 100 hourly SMA levels. If the bulls can overcome this, they might grow stronger.

BTC has more down sides

It could fall further if bitcoin does not recover from $44,500. A support zone of $42,650 is nearby. Near $42,500 is the first significant support and it was also near the low.

Price could drop further below the $42,424 level if there is a downside. If the above scenario is true, then the price of the property could drop to the $40,000 mark in the immediate future.

Technical indicators

Hourly MACD – The MACD is now losing pace in the bullish zone.

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

Major Support Levels – $42,500, followed by $40,000.

Major Resistance Levels – $43,500, $44,000 and $44,750.

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