03 Jan TA: Bitcoin Consolidates Below $48K: What Could Trigger A Sharp Decline
Bitcoin is struggling to recover above the $48,000 resistance against the US Dollar. BTC could decline heavily if there is a clear break below $46,000.
Bitcoin started a consolidation phase below the $48,500 and $48,000 resistance levels.
The price is trading below $48,000 and the 100 hourly simple moving average.
There is a connecting bearish trend line forming with resistance near $47,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair remains at a risk of a larger decline unless it surges above the $48,000 barrier.
Bitcoin Price Remains At Risk
Bitcoin price failed to recover above $48,500 and started another decline. BTC traded below the $48,000 and $47,500 levels to move into a bearish zone.
The decline gained pace below the $47,000 level and the 100 hourly simple moving average. A low was formed near $45,530 before the price started an upside correction. Bitcoin was able to recover above the $46,500 and $47,000 levels.
The price climbed above the 50% Fib retracement level of the key decline from the $48,591 swing high to $45,530 low. However, the price failed to clear the $48,000 resistance zone.
Besides, there is a connecting bearish trend line forming with resistance near $47,600 on the hourly chart of the BTC/USD pair. The trend line is near the 76.4% Fib retracement level of the key decline from the $48,591 swing high to $45,530 low.
Source: BTCUSD on TradingView.com
A clear move above the $48,000 resistance zone could start a fresh increase. The next major resistance is near the $48,500 level. Any more gains could send the price towards the $50,000 level in the near term.
Fresh Decline In BTC?
If bitcoin fails to recover above $48,000, it could continue to move down. An immediate support is near the $46,400 zone. The first major support is near $46,100.
A downside break below the $46,100 level could push the price towards the $45,500 support. Any more losses may possibly spark a larger decline below the $45,000 support zone. In the stated case, the price may possibly decline towards the $43,200 level.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is below the 50 level.
Major Support Levels – $46,100, followed by $45,500.
Major Resistance Levels – $47,500, $48,000 and $48,500.
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