Bitcoin failed to clear the $45,500 resistance zone again. It started a decline and risks more losses below $42,500 according to technical analysis by NewsBTC’s Aayush Jindal.
Bitcoin Is Correcting
Bitcoin attempted an upside break above the $45,500 resistance zone and struggled to gain momentum above the $45,500 level. However, BTC started a fresh decline after forming a local top near $45,900.
BTC settled below the $45,000 and $44,500 support levels. Also, there was a break below a key bullish trend line with support near $43,500 on the hourly chart of the BTC/USD pair and low to $42,664. The pair is now trading below the $43,500 level and the 100 hourly simple moving average.
An immediate resistance is near the $43,450 level. This is close to the 23.6% Fib retracement level of the low from the $45,900 high to $42,664 low. The first major resistance is near the $44,000 level and the 100 hourly simple moving average. The next key resistance is near the $44,250 level. This is close to the 50% Fib retracement level of the drop from the $45,900 high to $42,664 low.
$44,250 Crucial
A clear upside break above $44,250 could open the doors for more upside. The main upside resistance is still near the $45,500 level.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to start a fresh rise above $44,250, it may continue to decline. According to him, an immediate support is near the $42,600 zone. The next major support is seen near the $42,500 level. If there is a downside break below the $42,500 support, the price could start a major decline towards the $41,200 level.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD is now gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
- Main Support Levels – $42,500 followed by $41,200
- Main Resistance Levels – $44,000, 44,250 and 45,500
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