Bitcoin corrected to the downside after struggling to climb above the $48,000 resistance. Drops could be limited to $46,000, according to technical analysis by NewsBTC’s Aayush Jindal.
Bitcoin Continues to Find Support
Recently, Bitcoin even broke the $48,000 resistance zone and rose up to $48,200. Then, there was a downside correction from the $48,200 high and it settled below the 23.6% Fib retracement level of the upward move from the $44,468 low to $48,200 high. However, it is still trading above the 100 hourly simple moving average. There is also a key breakout pattern forming with support near $46,300 on the hourly chart of
BTC/USD. It is facing resistance near the $47,600 level.
The next major resistance could be near the $47,800 area and the triangle trendline. A successful break and close above the triangle resistance could push the price towards $48,200. The next major hurdle on the upside could be near the $49,000 level. Any further gains could push the price towards the $50,000 level.
Are Drops Limited?
According to Jindal, if Bitcoin fails to break past the $47,800 resistance zone, it could face further corrections. An immediate support on the downside is near the $47,000 zone. The next major support is seen near the $46,800 level. The key support is now forming near the $46,400 level and the triangle trend line. This is close to the 50% Fib retracement level of the upward move from the $44,468 low to $48,200 high.
A downside break below the $46,300 support zone could send the price towards $46,000 and the 100 hourly SMA. Any further losses could put too much pressure on the bulls in the near term.
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 just below the 50 level.
- Major Support Levels – 46,800 followed by $46,300
- Major Resistance Levels – $47,800, 48,000 and 48,200
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