TA: Bitcoin Corrects Lower, Why 100 SMA Is The Key For Fresh Increase
Bitcoin price started a downside correction below $46,000 against the US Dollar. BTC is now consolidating above the $43,800 support and the 100 hourly SMA.
- Bitcoin failed to stay above the $47,000 level and corrected below $46,000.
- The price is holding the $44,000 level and the 100 hourly simple moving average.
- There was a break below a key contracting triangle pattern with support near $46,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to start a fresh increase if it stays above $43,000 and the 100 hourly SMA.
Bitcoin Price is Showing a Few Bearish Signs
After struggling to climb back above $47,000, bitcoin price started a downside correction. BTC traded below the $46,000 support level to move into a short-term bearish zone.
There was also a break below a key contracting triangle pattern with support near $46,000 on the hourly chart of the BTC/USD pair. The pair even traded below the $45,000 and $44,450 levels. A low is formed near $43,748 and the price is currently consolidating losses.
An initial resistance on the upside is near the $45,500 level. It is close to the 50% Fib retracement level recent decline from the $47,356 high to $43,748 low.
The next major resistance is near the $46,000 level (the recent breakdown zone). The 61.8% Fib retracement level recent decline from the $47,356 high to $43,748 low is also near the $46,000 level. A successful break above the $46,000 resistance level is likely to start a fresh increase in the near term.
The next major resistance is near the $47,000 level. Any more gains could open the doors for a push towards the $48,000 level.
Dips Supported in BTC?
If bitcoin fails to continue higher, it could correct further lower below the $44,000 level. The first major support is near the $43,750 level.
The main support is now forming near the $43,000 level or the 100 hourly simple moving average. Any more losses below the $43,000 may possibly lead the price towards the $41,000 support level in the near term.
Technical indicators:
Hourly MACD – The MACD is slowly losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $43,750, followed by $43,000.
Major Resistance Levels – $45,500, $46,000 and $47,000.
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OhNoCrypto
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, @KhareemSudlow
