Bitcoin failed to stay above the $46,000 support level against the US Dollar. BTC is slipping and may test the $43,200 support area.
- Bitcoin price is down more than 4% and there was a move below the $46,000 support level.
- The price is trading below $45,500 and the 100 hourly simple moving average.
- There was a break below the major breakout pattern with support near $46,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could extend its decline and test the $43,200 support area in the near term.
Bitcoin Price Drops Below Support
Bitcoin price started a major decline after it struggled to stay above $46,500 and $46,400. BTC dropped below $46000 support To move to a short term downtrend.
There was a clear move below the 50% Fib retracement level of the bullish wave from the $44,470 swing low of $48,200. Bears managed to push the price below the $45,500 support and 100-hour simple moving average.
Besides, there was a break below the major breakout pattern with support near $46,800 on the hourly chart of the BTC/USD pair. Bitcoin is now trading below the 76.4% Fibonacci retracement level of the upside wave from the $44,470 swing low at $48,200.
Source: BTCUSD on TradingView.com
There is immediate support on the downside near the $44,450 level. The next major support appears near the $44,000 level. The main support is now near the $43,320 level. It is near the 1.236 Fibonacci extension level of the upside wave from the $44,470 swing low at $48,200. A break-down below the $43,320 support area could send the price to $42,000 in the near term.
The positives culminated in bitcoin?
If bitcoin remains stable above the $44,450 support level, it may attempt an upward correction. There is an immediate resistance on the upside near the $45,500 level.
The next major resistance is near the $45,800 level. The main obstacle is now forming near the $46,350 level (previous breaking area), above which the price could rise steadily. In the mentioned case, it could test the $47,200 level and the 100 hourly simple moving average.
Hourly MACD – The MACD is slowly gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now in oversold territory.
Key support levels – $44,450, followed by $43,320.
The main resistance levels are $45,500, $45,800 and $46,350.