TA: Why Bitcoin Price Is At Risk of A Drop Below $45,000

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price failed to settle above the $50,000 pivot zone against the US Dollar. BTC is now showing bearish signs and it seems like it could even decline below the $45,000 support.

Bitcoin started a fresh decline after it failed to clear the $51,500 and $52,000 resistance levels.
The price is now trading well below the $50,000 level and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support at $49,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could move down further towards $45,000 or even $42,000 if it remains in the red zone.

Bitcoin Price is Showing Bearish Signs

After a clear break above the $50,000 level, bitcoin recovered further above $51,000. However, BTC faced a strong selling interest near the $52,000 level (as discussed in the last two analysis).

The price also topped near the 100 hourly simple moving average at $52,000. There was a fresh bearish wave below the $50,000 support zone. The bears gained strength, resulting in a break below a key bullish trend line with support at $49,800 on the hourly chart of the BTC/USD pair.

The pair even broke the $47,000 support and traded as low as $46,228. It is currently consolidating losses near the $47,000 level. An initial resistance on the upside is near the $47,500 level. The first major resistance is near the $49,150 level. It is close to the 50% Fib retracement level of the recent decline from the $52,088 high to $46,228 low.

Source: BTCUSD on TradingView.com

The main resistance is now forming near the $50,700 level and the 100 hourly simple moving average. It is close to the 76.4% Fib retracement level of the recent decline from the $52,088 high to $46,228 low.

A close above the $50,000 level and a follow up move above the $50,700 level may possibly open the doors for a break of the $52,000 resistance zone.

More Losses in BTC?

If bitcoin fails to continue higher above the $49,500 and $50,000 resistance levels, there could be more losses. An initial support on the downside is near the $46,200 level.

The first major support is still near the $45,000 zone. If there is a clear break below the $45,000 support, the price could dive towards the $42,000 support zone.

Technical indicators:

Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.

Major Support Levels – $46,200, followed by $45,000.

Major Resistance Levels – $49,150, $50,000 and $50,700.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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