Bitcoin is consolidating losses above the $43,000 support. According to technical analysis by NewsBTC’s Aayush Jindal, BTC may attempt an upside correction towards the $44,275 or $44,850 resistance.
Bitcoin Consolidates
Bitcoin dropped below the $45,000 support zone and even dropped below the $43,000 level. However, the bulls blocked further declines. The price started trading above the $43,000 level but it is still well below the $45,000 level and the 100 hourly simple moving average. It is now trading near a key bearish trend line forming with resistance near $43,650 on the hourly chart of the BTC/USD pair.
The first major hurdle is near the $43,830 level. This is near the 23.6% Fib retracement level of the key drop from the $46,845 low to $42,905 high. The next resistance could be near $44,275, where the price might struggle. If there is a move above $44,275, the price could test the $44,875 level. This is close to the 50% Fib retracement level of the key drop from the $46,845 low to $42,905 high.
$45,000 Level Significant
In the stated case, the price could rally towards the $46,000 resistance zone. An intermediate resistance could be near the $45,500 level.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break past the $44,875 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 recent low of $42,900. A downside break below the $42,900 support zone could accelerate losses. In the stated case, the price could decline to the $42,200 support in the near term. The next big support could be $42,000.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
- Major Support Levels – $43,000 then $42,000
- Major Resistance Levels – $43.875, $44,000 and $45,000
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