Bitcoin consolidates, which could trigger a sharp downward correction

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The price of Bitcoin is facing strong resistance of nearly $ 46,700 against the US dollar. BTC is likely to dip if it continues to struggle above the $ 46,500 resistance.

Bitcoin is still struggling to break through the resistance levels of $ 46,500 and $ 46,700. The price is now above the $ 45,000 area and the 100 hour simple moving average. There was a break below a major uptrend line with support near $ 46,000 on the hourly chart of the BTC / USD pair (Kraken data feed). The pair needs to stay above the $ 45,000 support to avoid a major near-term decline. Bitcoin price faces hurdles

The price of Bitcoin is still facing a strong barrier near the resistance levels of $ 46,500 and $ 46,700. BTC is currently consolidating well below the resistance zone of $ 46,700.

Recently there has been a slight downward correction from the high of $ 46,699. The price traded below the support level of $ 46,000. There was a break below the 50% Fib retracement level of the bullish move from the low of $ 44,714 to $ 46,699.

Additionally, there was a break below a major uptrend line with support near $ 46,000 on the hourly chart for the BTC / USD pair. The pair is now above the $ 45,000 area and the 100 hour simple moving average. Immediate downside support is near the $ 45,450 level.

The 61.8% Fib retracement level of the uptrend from the $ 44,714 low to $ 46,699 is also near the $ 45,450 level. On the upside, initial resistance is near the $ 46,200 level.

Source: BTCUSD on TradingView.com

The first key resistance is near the $ 46,500 level. Major resistance is now forming near the $ 46,700 level. A clear break above the $ 46,700 is a must to start another raise. In the case indicated, the price could easily reach the level of $ 47,500. The next major resistance is near the $ 48,000 level.

Sharp drop in BTC?

If bitcoin fails to break above the resistance levels of $ 46,200 and $ 46,500, it could continue to fall. Initial bearish support is near the $ 45,450 level.

The first major support is now near the $ 45,200 area and the 100 hour SMA. Primary support could be $ 45,000. Therefore, a clear bearish breakout below the $ 45,000 support area could trigger a steep decline. The next major support could be $ 43,200.

Technical indicators:

Hourly MACD The MACD is slowly losing steam in the bullish zone.

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

Major support levels $ 45,200, followed by $ 45,000.

Major resistance levels $ 46,200, $ 46,500 and $ 46,700.

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