Bitcoin continues its decline below the $45,000 support. It remains at risk of moving towards the $42,000 support zone, according to technical analysis by NewsBTC’s Aayush Jindal.
Bitcoin Drops Over 5%
Bitcoin started a massive decline and traded below the $45,500 support levels. The price even broke the $45,000 support level and settled below the 100 hourly simple moving average. BTC, which fell to $ 42,904, has now reclaimed the $ 43,000 level.
An immediate upside resistance is near the $43,800 level. This is near the 23.6% Fib retracement level of the recent decline from the $46,845 low to $42,904 low. There are also two bearish trend lines forming with resistance near $43,900 and $46,400 on the hourly chart of the BTC/USD pair.
According to him, the next resistance could be near $44,250. The main resistance is now near the $45,000 or the 50% Fib retracement level of the recent decline from the $42,904 low to $46,845 high.
According to Jindal, Bitcoin must surpass the $44,800 and $45,000 resistance levels to start a fresh increase. In the indicated case, the price may perhaps rally towards the $46,000 resistance zone.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break past the $44,000 resistance zone, it may continue to move lower. An immediate support on the downside is near the $43,000 level. The next major support is seen near the $42,800 level. A downside break below the $42,800 support zone could increase selling pressure. In the stated case, the price could decline to the $42,000 support in the near term. The next major support could be $41,200.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.
- Major Support Levels – $43,000 then $42,000
- Major Resistance Levels – $43,800, $44,000 and $45,000
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