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.
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.
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.