Bitcoin Consolidates, What Could Trigger A Sharp Downside Correction

Bitcoin price is facing a strong resistance near $46,700 against the US Dollar. BTC is likely to nosedive if it continues to struggle above the $46,500 resistance.

Bitcoin is still struggling to clear the $46,500 and $46,700 resistance levels.
The price is now above the $45,000 zone and the 100 hourly simple moving average.
There was a break below a major bullish trend line with support near $46,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must stay above the $45,000 support to avoid a major decline in the near term.

Bitcoin Price Faces Hurdles
Bitcoin price is still facing a strong barrier near the $46,500 and $46,700 resistance levels. BTC is currently consolidating well below the $46,700 resistance zone.
Recently, there was a minor downside correction from the $46,699 high. The price traded below the $46,000 support level. There was a break below the 50% Fib retracement level of the upward move from the $44,714 swing low to $46,699 high.
Besides, there was a break below a major bullish trend line with support near $46,000 on the hourly chart of the BTC/USD pair. The pair is now above the $45,000 zone and the 100 hourly simple moving average. An immediate support on the downside is near the $45,450 level.
The 61.8% Fib retracement level of the upward move from the $44,714 swing low to $46,699 high is also sitting near the $45,450 level. On the upside, an initial resistance is near the $46,200 level.

Source: BTCUSD on TradingView.com
The first key resistance is near the $46,500 level. The main resistance is now forming near the $46,700 level. A clear break above the $46,700 is must to start another increase. In the stated case, the price might easily rise towards the $47,500 level. The next major resistance is near the $48,000 level.
Sharp Decline in BTC?
If bitcoin fails to climb above the $46,200 and $46,500 resistance levels, it could continue to move down. An initial support on the downside is near the $45,450 level.
The first major support is now near the $45,200 zone and the 100 hourly SMA. The main support could be $45,000. Therefore, a clear downside break below the $45,000 support zone could trigger a sharp decline. The next major support could be $43,200.
Technical indicators:
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.
Major Support Levels – $45,200, followed by $45,000.
Major Resistance Levels – $46,200, $46,500 and $46,700.

Joe Erickson

I’m a highly experienced and successful crypto author with over 10 years of experience in the industry. I have written for some of the biggest names in the space, and my work has been featured in major publications such as Bloomberg, Forbes, and The Wall Street Journal. I am a sought-after speaker and commentator on all things crypto, and my work is widely respected by my peers. If you’re looking for someone who can provide insights and analysis on the latest developments in the world of cryptocurrencies, you can contact me.