Bitcoin started a correction after it broke above the $44,000 resistance zone. According to technical analysis by NewsBTC’s Aayush Jindal, it could drop further if it breaks the $42,800 support.
Bitcoin Experiencing Correction
Bitcoin started a downside correction after surging as high as $45,500. There was a move below the $44,000 support level. Besides, there was a break below a key bullish trend line with support near $44,000 on the hourly chart of the BTC/USD pair. BTC even broke below the 50% Fib retracement level of the upward move from the $41,140 low to $45,500 high. However, the bulls defended the $42,800 support zone. Besides, the 61.8% Fib retracement level of the upward move from the $41,140 low to $45,500 high also acted as a strong support.
Bitcoin is currently trading at $43,755. An immediate resistance is near the $44,000 level. The next major resistance is near the $44,450 area where it could start a fresh increase in the near term.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to start a fresh increase above $44,000, it may continue to move lower. An immediate support on the downside is near the $42,800 area. The next major support is near the $42,500 level and the 100 hourly simple moving average. If there is a downside break below the $42,500 support, the price could slide 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 – 42,800 followed by $42,500
- Main Resistance Levels – $44,000, $44,450 and $45,500
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