Bitcoin price has extended its decline below the USD 45,000 support zone against the US dollar. BTC is in decline and could test $ 42,000 or $ 40,000 in the near future.
- Bitcoin saw a sharp drop, well over $ 50,000, and was trading close to $ 45,000
- The price is now trading well below $ 45,000 and the 100 hour simple moving average.
- An important bearish trendline is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 45,000.
- The pair is likely to find bids near the $ 42,000 or $ 40,000 zone in the upcoming sessions.
Bitcoin price prolongs losses
Bitcoin failed to settle above the $ 50,000 level and started a new decline. BTC broke many key supports near $ 48,000 and $ 47,000 to move further into a bearish zone.
The price traded below the $ 45,000 support level and was well below the 100 hour simple moving average. There has recently been a minor upward correction from the $ 43,800 zone. The price rose above the $ 45,000 level but failed to expand profits.
Source: BTCUSD on TradingView.com
A high was formed near $ 46,645 before the price fell again. There was a break below the $ 45,000 support zone. An important bearish trendline is also forming on the hourly chart of the BTC / USD pair with resistance near USD 45,000.
The pair even broke recent low at $ 43,869 and is prolonging losses. Initial support is near the $ 43,200 level. It is near the 1,236 Fib extension level of the upside move from the low of $ 43,869 to the high of $ 46,645.
The main support is near the $ 42,000 zone. It is close to the 1.618 Fib extension level of the move up from the low of $ 43,869 to the high of $ 46,645. Further losses could require testing of the $ 40,000 support zone.
New rise in BTC?
If Bitcoin stays above the USD 42,000 support zone, there is a possibility of a decent rise. Initial resistance to the upside is near the USD 45,000 level and the trend line.
The main resistance is near the $ 46,500 zone. A closing price above the $ 46,500 level is required for a steady increase in the upcoming sessions.
Hourly MACD – The MACD is now picking up pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is moving lower towards 20.
Major Support Levels – $ 42,000, followed by $ 40,000.
Main Resistance Levels – $ 45,000, $ 46,500, and $ 48,000.