Bitcoin failed to stay above the $46,000 support. BTC is now falling and it could test the $43,200 support zone, according to technical analysis by NewsBTC’s Aayush Jindal.
Bitcoin Drops Below Support
Bitcoin started a significant decline after struggling to stay above $46,500 and $46,400. There was a clear move below the 50% Fib retracement level of the upward wave from the $44,470 low to the $48,200 high. The bears managed to push the price below the $45,500 support and the 100 hourly simple moving average. Besides, there was a break below a key breakout pattern with support near $46,800 on the hourly chart of the BTC/USD pair. Bitcoin is now trading below the 76.4% Fib retracement level of the move from the $44,470 low to the $48,200 high.
An immediate support is near the $44,450 level. The next major support is seen near the $44,000 level. The main support is currently near the $43,320 level. This is close to the 1.236 Fib retracement level of the upward move from the $44,470 low to $48,200 high. A downside break below the $43,320 support zone could send the price towards $42,000 in the near term.
Will Bitcoin Rise?
Jindal says that if Bitcoin stays stable above the $44,450 support level, it could attempt an upside correction. An immediate resistance on the upside is near the $45,500 level. The next major resistance is near the $45,800 level. The most important hurdle is currently forming near the $46,350 level (the previous breakout zone), above which the price could rise nicely. In the stated case, it could test the $47,200 level and the 100 hourly simple moving average.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently in the oversold territory.
- Major Support Levels – $44,450 followed by $43,320
- Major Resistance Levels – $45,500, 45,800 and 46,350
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