What would cause a sharp drop

Bitcoin is trying to recover above the USD 48,000 resistance level against the U.S. dollar. If it clearly falls below 46,000 USD, BTC may fall sharply.

  • Bitcoin started the consolidation phase below the resistance levels of $48,500 and $48,000.
  • The price is below USD 48,000 and the 100-hour simple moving average.
  • A connected bearish trend line was formed on the hourly chart of the BTC/USD currency pair, with resistance near $47,600 (data feed from Kraken).
  • Unless it soars above the US$48,000 mark, the currency pair is still at risk of further declines.

Bitcoin price is still at risk

Bitcoin price failed to recover above $48,500 and started Down again. BTC trading prices are below 48,000 USD and 47,500 USD, entering a bearish zone.

The decline accelerated below the $47,000 level, and 100 hour simple moving averageBefore the price started to correct upwards, a low was formed near $45,530. Bitcoin was able to recover to levels of 46,500 USD and above 47,000 USD.

The price climbed above the 50% Fibonacci retracement of the key decline and fell from a swing high of $48,591 to a low of $45,530. However, the price failed to break the resistance zone of 48,000 USD.

In addition, on the hourly chart of the BTC/USD currency pair, a connected bearish trend line was formed, and the resistance was near 47,600 USD. The trend line is close to the 76.4% Fibonacci retracement of the key decline, falling from a swing high of $48,591 to a low of $45,530.

Source: BTCUSD on TradingView.com

A clear break of the USD 48,000 resistance zone may start a new rise. The next major resistance is near the $48,500 level. In the short term, any more gains could raise the price to the level of $50,000.

BTC new drop?

If Bitcoin fails to recover above $48,000, it may continue to fall. The immediate support is near $46,400. The first major support is around 46,100 USD.

A break below the $46,100 level may push the price to the support level of $45,500. Any more losses could trigger a greater decline below the $45,000 support zone. Under the above circumstances, the price may fall to the level of US$43,200.

Technical index:

Hourly MACD – MACD is now accelerating in the bearish zone.

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

The main support level is US$46,100, followed by US$45,500.

The main resistance levels-47,500 USD, 48,000 USD and 48,500 USD.

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