Bitcoin Price Analysis: BTC Starts Downside Correction Below $46K
Bitcoin price is losing pace above $45,000 against the US Dollar. BTC is likely to correct further lower below the $44,000 level in the near term.
Bitcoin Price Analysis
Bitcoin price extended its increase above the $45,000 resistance level. BTC even broke the $47,000 resistance level to move further into a bullish zone. However, the price failed to surpass the $48,000 resistance.
A high was formed near $48,115 before the price started a downside correction. There was a break below the $47,000 and $46,000 levels. There was also a break below a key bullish trend line with support near $45,600 on the 4-hours chart of the BTC/USD pair.
The pair traded below the 23.6% % Fib retracement level of the upward move from the $37,334 swing low to $48,115 high. It is now trading below $46,000 and the 55 simple moving average (4-hours).
An immediate support is near the $44,000 level. The first key support is near the $43,750 level. The next major support is near the $42,500 level. It is near the 50% Fib retracement level of the upward move from the $37,334 swing low to $48,115 high.
Any more losses could open the doors for a move towards the $42,000 support zone. On the upside, an initial resistance is near the $45,200 level. The first major resistance is near the $45,500 level.
The main resistance is now forming near the $46,000 level. A close above the $46,000 zone is needed for a fresh increase. In the stated case, the price is likely to rise steadily towards the $48,000 level.
Looking at the chart, bitcoin price is clearly trading below $46,000 and the 55 simple moving average (4-hours). Overall, the price is likely to continue lower towards the $43,750 and $42,500 support levels in the near term.
4 hours MACD – The MACD is now gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.
Key Support Levels – $43,750 and $42,500.
Key Resistance Levels – $45,500, $46,000 and $48,000.
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