TA: Bitcoin Struggles To Hold Key Support, What Could Trigger More Downsides

Aayush Jindal

Last Updated: June 11, 2024 10:38 am

2 mins read

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Bitcoin price failed to clear $48,000 and corrected lower against the US Dollar. BTC is likely to extend its decline if it breaks the $45,000 support zone.

Bitcoin started a fresh decline after it failed to clear the $48,000 resistance.
The price is now trading below $47,000 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $46,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to extend its decline if it fails to stay above the $45,000 support.

Bitcoin Price Corrects Lower

Bitcoin price made another attempt to clear the $48,000 resistance zone. However, BTC struggled to gain strength, resulting in a bearish reaction below the $47,000 support zone.

The price declined below the $46,500 support level and the 100 hourly simple moving average. There was also a break below a key bullish trend line with support near $46,400 on the hourly chart of the BTC/USD pair.

The pair spiked below the $45,500 support level, but it remained above $45,000. A low is formed near $45,288 and the price is now consolidating losses. It corrected above the $46,000 level. There was a break above the 23.6% Fib retracement level of the recent decline from the $48,080 swing high to $45,288 low.

On the upside, an immediate resistance is near the $46,500 level. The first key resistance is near the $46,750 level and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

The 50% Fib retracement level of the recent decline from the $48,080 swing high to $45,288 low is also near the $46,685 level. If bitcoin clears the $46,700 and $47,000 resistance levels, it could revisit the $48,000 resistance zone in the near term.

More Losses in BTC?

If bitcoin fails to climb above the $46,700 and $47,000 resistance levels, it could extend its decline. An initial support on the downside is near the $45,500 level.

The first major support is now near the $45,200 zone. The main support is now forming near the $45,000 level. If the price fails to stay above the $45,000 support, it could move down towards the $43,200 support level.

Technical indicators:

Hourly MACD – The MACD is losing pace in the bearish zone.

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

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

Major Resistance Levels – $46,500, $46,700 and $47,000.

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.
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