Bitcoin tried to make a move towards $45,000 but failed. BTC is now correcting but declines may be limited to $42,800, according to technical analysis by NewsBTC’s Aayush Jindal.
Bitcoin Faces Resistance
Bitcoin continued to find support and extended its rise above the $44,000 level. However, there were no tests for the $45,000 resistance zone. BTC formed a local top near $44,770 and started a decline from there. There was a break below the $44,500 support zone. Besides, there was a break below a short term ascending channel with support near $44,200 on the hourly chart of the BTC/USD pair.
Bitcoin is trading just below the 23.6% Fib retracement level of the upward move from the $41,573 high to $44,770 high. It may face resistance near the broken channel support at $44,200.
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The first major resistance is near the $44,500 level. A clear move above the $44,500 resistance zone could push the price higher. The next major resistance is near the $45,000 level, above which the price could rise to the $45,500 resistance level.
Is Drop Limited?
Jindal says that if Bitcoin fails to continue rising above the $44,500 resistance zone, it could initiate a downside correction. An immediate support on the downside is near the $43,800 zone.
The next major support is seen near the $43,150 level. This is close to the 50% Fib retracement level of the upward move from the $41,573 high to $44,770 high. If there is a downside break below the $43,850 support zone, the price might struggle. The next support is near $42,800 or the 100 hourly SMA, below which there is a risk of a sharp decline in the near term.
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 still above the 50 level.
- Major Support Levels – $43,800 followed by $43,150
- Major Resistance Levels – $44,200, 44,500 and 45,500