Bitcoin Recovers Heavy Losses, Why BTC Could Resume Decline

[ad_1]

The price of Bitcoin fell more than 15% and tested $ 42,000 against the US dollar. BTC is recovering, but it could face sellers near the resistance levels of $ 48,500 and $ 49,000.

Bitcoin began a significant decline below the support levels of $ 50,000 and $ 48,500. The price is now trading well below $ 50,000 and the 100 hour simple moving average. There was a break below a key uptrend line with support near $ 52,150 on the hourly chart of the BTC / USD pair (Kraken data feed). The pair is correcting losses, but bears are expected to remain active near $ 48,500 and $ 50,000. Bitcoin Price Rises Above $ 45,000

The price of Bitcoin failed to cross the $ 53,000 zone and began to decline significantly. BTC broke through the key support zone of $ 52,000 and the 100 hour simple moving average to enter a bearish zone.

There was also a break below a key uptrend line with support near $ 52,150 on the hourly chart for the BTC / USD pair. The pair even fell sharply below the $ 48,500 support area. Finally, there was a spike below the $ 45,000 support area and the price tested the $ 42,000 level.

A low formed near $ 42,000 before there was a rally. The price broke through the resistance of $ 45,000. It broke the 23.6% Fib retracement level of the recent decline from a high of $ 52,800 to a low of $ 42,000.

Source: BTCUSD on TradingView.com

Immediate upside resistance is near the $ 47,500 level. It is near the 50% Fib retracement level of the recent decline, from a high of $ 52,800 to a low of $ 42,000. The first major resistance is near the $ 48,500 level. A close above the $ 48,500 level could push the price higher in the short term. The next major hurdle for the bulls could be near the $ 50,000 zone.

More losses in BTC?

If bitcoin fails to break through the resistance zone of $ 48,500, it could start a further decline. Immediate downside support is near the $ 46,500 level.

The first major support is near the $ 46,000 level. If there is a breakout to the downside below the $ 46,000 support area, the price could extend its decline. In the case indicated, the price could test the support of $ 43,500.

Technical indicators:

Hourly MACD The MACD is slowly accelerating in the bullish zone.

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

Major support levels $ 46,500, followed by $ 46,000.

Major resistance levels $ 47,500, $ 48,500 and $ 50,000.

[ad_2]