Bitcoin rallied and traded close to the $45,000 resistance. BTC is now consolidating its gains and could drop as low as $43,000 in the near term, according to technical analysis by NewsBTC’s Aayush Jindal.
Bitcoin Becomes Consolidated
Bitcoin rallied above $44,500 after starting a massive rally above the $42,000 level. It even traded close to the $45,000 resistance it faced with sellers. Thereafter, there was a minor dip below the $44,500 level and it is now consolidating gains. There is also a key contracting triangle forming with resistance near $44,450 on the hourly chart of the
BTC/USD pair. An immediate resistance is near the $44,200 level. The first key resistance is near the $44,450 level and the upper trend line of the formation.
The main resistance is now near the $45,000 level. A clear move above the $45,000 resistance could push the price higher. In the indicated case, a clear move above $45,500 could be attempted.
Are Bitcoin Drops Limited?
Jindal says that if Bitcoin fails to break past the $44,500 resistance zone, it could start a downside correction. An immediate support on the downside is near the $43,800 zone and the lower trend line of the formation.
The next major support is seen near the $43,000 level. If there is a downside break below the $43,000 support, the price could decline to $41,000. This is close to the 50% Fib retracement level of the upward move from the $37,030 high to $44,955 high.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now losing momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD continues to correct from the overbought zone.
- Major Support Levels – 43,800 followed by $43,000
- Major Resistance Levels – 44,200, 44,450 and $45,000
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