15 January 2024
Bitcoin price topped near the $49,000 resistance zone. BTC started a major decline and broke many key supports at $45,000 to enter a short-term bearish zone.
Bitcoin peaked near the $49,000 level and started a steady decline.
The price is trading below $43,500 and the 100 hourly Simple moving average.
There is a connecting bearish trend line forming with resistance near $42,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh decline if there is a move below the $41,500 support zone.
Bitcoin Price Takes Major Hit
Bitcoin price failed to test the $50,000 resistance zone. BTC peaked near the $49,000 level and started a major decline. There was a strong decline below the $48,000 and $46,500 support levels.
The bears even pushed the price below the $45,000 support zone. It declined over 12% and tested the $41,500 support zone. A low was formed near $41,476 and the price started a recovery wave. There was a minor increase above the $42,000 resistance zone.
However, Bitcoin is still trading below $43,500 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $42,800 level.
There is also a connecting bearish trend line forming with resistance near $42,850 on the hourly chart of the BTC/USD pair. The first major resistance is $43,250 or the 23.6% Fib retracement level of the downward move from the $49,000 swing high to the $41,476 low.
Source: BTCUSD on TradingView.com
A clear move above the $43,250 resistance could send the price toward the $44,000 resistance. The next resistance is now forming near the $45,200 level. It is near the 50% Fib retracement level of the downward move from the $49,000 swing high to the $41,476 low. A close above the $45,300 level could start a strong increase and send the price higher. The next major resistance sits at $47,000.
More Losses In BTC?
If Bitcoin fails to rise above the $43,250 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $42,120 level.
The next major support is $41,500. If there is a move below $41,500, the price could gain bearish momentum. In the stated case, the price could drop toward the $40,000 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $42,120, followed by $41,500.
Major Resistance Levels – $42,800, $43,250, and $44,000.