What could trigger another fall?

Bitcoin extended the decline below the $ 44,000 level against the US Dollar. BTC remains at risk of further downside unless there is a breakout 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.
  • A key bearish continuation pattern is forming with resistance near $ 43,500 on the hourly chart of the BTC / USD pair (data feed from Kraken).
  • The pair could face resistance if there is a move above the $ 44,000 level.

Bitcoin price remains at risk

Bitcoin price started a major drop 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. You are now consolidating losses above the $ 42,500 level.

An immediate resistance is near the $ 43,500 level. It is close to the 23.6% Fib retracement level of the recent drop from the high of $ 47,065 to the low of $ 42,424. A key bearish continuation pattern is also 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 close to 50% of the Fibonacci retracement level of the recent drop from the high of $ 47,065 to the low of $ 42,424.

Bitcoin price

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 could gain strength.

More downsides on BTC?

If bitcoin does not rally above $ 44,500, it could continue to decline. An immediate support is near the $ 42,650 zone. The first major support is near $ 42,500 and the recent low.

A break to the downside below the $ 42,424 low could send the price down even further. In the stated case, it is possible for the price to turn down towards the $ 40,000 level in the short 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.

Source: https://www.newsbtc.com/analysis/btc/bitcoin-consolidates-below-45k/

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