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Bitcoin Price Plunge Imminent as Bears Protect Key Resistance

Bitcoin price is still struggling to clear the $44,500 and $44,700 resistance levels. BTC is showing a few bearish signs and might drop toward $42,150.

  • Bitcoin is facing a major hurdle near the $44,500 resistance zone.
  • The price is trading below $44,000 and the 100 hourly Simple moving average.
  • There was a break below a key bullish trend line with support at $44,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could decline toward the $42,350 and $42,150 support levels.

Bitcoin Price Faces Hurdles

Bitcoin price attempted a fresh increase above the $43,500 resistance zone. BTC even broke the $43,800 resistance zone but the bears were active near the $44,500 resistance zone.

There were a few attempts to gain strength above $44,500, but the bears remained active. A high was formed near $44,483 and the price is now showing a few bearish signs. There was a drop below the $44,000 support zone. The price traded below the 50% Fib retracement level of the upward move from the $42,480 swing low to the $44,483 high.

Besides, there was a break below a key bullish trend line with support at $44,000 on the hourly chart of the BTC/USD pair. Bitcoin is now below $44,000 and the 100 hourly Simple moving average.

Source: BTCUSD on TradingView.com

On the upside, immediate resistance is near the $44,000 level. The first major resistance is $44,200. The main resistance is now forming near the $44,500 level. A close above the $44,500 level could send the price further higher. The next major resistance sits at $45,450. Any more gains above the $45,450 level could open the doors for a move toward the $46,200 level.

More Losses In BTC?

If Bitcoin fails to rise above the $44,000 resistance zone, it could continue to move down. Immediate support on the downside is near the $43,200 level or the 61.8% Fib retracement level of the upward move from the $42,480 swing low to the $44,483 high.

The next major support is near $42,800. If there is a move below $42,800, the price could gain bearish momentum. In the stated case, the price could drop toward the $42,150 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

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

Major Support Levels – $42,800, followed by $42,150.

Major Resistance Levels – $44,000, $44,200, and $44,500.

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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