TA: Bitcoin Plunges Below Key Support, Turn Sell On Rallies

Bitcoin declined sharply below the $45,500 support against the US Dollar. BTC could recover, but upsides might be limited above $45,000. The price is trading below $45,000 and the 100 hourly simple moving average.

There is a crucial bearish trend line forming with resistance near $46,800 on the hourly chart of the BTC/USD pair. Further, the pair might start recovery, but the bears might remain active near the $45,000 zone.

Also, Bitcoin’s price failed to clear the $47,500 resistance zone and started a significant decline.  Further, BTC declined firmly below the $46,000 and $45,00 levels.

The bears even pushed the price below the $43,500 level. A low has formed near $42,505, and the price is now consolidating losses even with support. It is trading near the $43,500 level. Moreover, it is facing resistance near the 23.6% Fib retracement level of the key decline from the $47,066 swing high to $42,505 low.

At the time of writing, Bitcoin is trading below $45,000 with the 100 hourly simple moving average. An initial resistance is near the $44,000 level. The first major resistance on the upside is near the $44,800 level.

Moreover, the 50% Fib retracement level of the key decline from the $47,066 swing high to $42,505 low is also near the $44,800 level. A clear move above the $44,800 resistance zone could send the price towards the trend line. 

To conclude, if bitcoin fails to retrieve above the $44800, it may continue to move down. Immediate support is near the $43,000 zone. The first major support is nearly $42,500.

Author: cryptoads

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