What Could Trigger Another Decline
Bitcoin extended decline below the $44,000 level against the US Dollar. BTC remains at a risk of more downsides unless there is a break above $45,000.
Bitcoin started a major decline below the key $45,500 support zone.
The price is trading below $44,000 and the 100 hourly simple moving average.
There is a key bearish continuation pattern forming with resistance near $43,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might face resistance if there is a move above the $44,000 level.
Bitcoin Price Remains At Risk
Bitcoin price started a major decline below the $46,500 and $45,000 support levels. BTC remained in a bearish zone and there was a move below the $44,000 level.
The price settled below the $43,500 level and the 100 hourly simple moving average. There was a clear move below the $43,000 level and the price traded as low as $42,424. It is now consolidating losses above the $42,500 level.
An immediate resistance is near the $43,500 level. It is near the 23.6% Fib retracement level of the recent drop from the $47,065 swing high to $42,424 low. There is also a key bearish continuation pattern forming with resistance near $43,500 on the hourly chart of the BTC/USD pair.
The first major resistance on the upside is near the $44,500 level. The next major resistance is near the $44,750 level. It is near the 50% Fib retracement level of the recent drop from the $47,065 swing high to $42,424 low.
Source: BTCUSD on TradingView.com
A clear move above the $44,750 resistance zone could start a decent recovery wave. The next major resistance is near the $45,600 level and the 100 hourly SMA, above which the bulls might gain strength.
More Downsides in BTC?
If bitcoin fails to recover above $44,500, it could continue to move down. An immediate support is near the $42,650 zone. The first major support is near $42,500 and the recent low.
A downside break below the $42,424 low could push the price further lower. In the stated case, the price may possibly decline towards the $40,000 level in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $42,500, followed by $40,000.
Major Resistance Levels – $43,500, $44,000 and $44,750.
