Bitcoin Struggles To Hold Key Support, What Could Trigger More Downsides

Bitcoin price failed to clear $48,000 and corrected lower against the US Dollar. BTC is likely to extend its decline if it breaks the $45,000 support zone.

Bitcoin started a fresh decline after it failed to clear the $48,000 resistance.
The price is now trading below $47,000 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $46,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to extend its decline if it fails to stay above the $45,000 support.

Bitcoin Price Corrects Lower
Bitcoin price made another attempt to clear the $48,000 resistance zone. However, BTC struggled to gain strength, resulting in a bearish reaction below the $47,000 support zone.
The price declined below the $46,500 support level and the 100 hourly simple moving average. There was also a break below a key bullish trend line with support near $46,400 on the hourly chart of the BTC/USD pair.
The pair spiked below the $45,500 support level, but it remained above $45,000. A low is formed near $45,288 and the price is now consolidating losses. It corrected above the $46,000 level. There was a break above the 23.6% Fib retracement level of the recent decline from the $48,080 swing high to $45,288 low.
On the upside, an immediate resistance is near the $46,500 level. The first key resistance is near the $46,750 level and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com
The 50% Fib retracement level of the recent decline from the $48,080 swing high to $45,288 low is also near the $46,685 level. If bitcoin clears the $46,700 and $47,000 resistance levels, it could revisit the $48,000 resistance zone in the near term.
More Losses in BTC?
If bitcoin fails to climb above the $46,700 and $47,000 resistance levels, it could extend its decline. An initial support on the downside is near the $45,500 level.
The first major support is now near the $45,200 zone. The main support is now forming near the $45,000 level. If the price fails to stay above the $45,000 support, it could move down towards the $43,200 support level.
Technical indicators:
Hourly MACD – The MACD is 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 – $45,200, followed by $45,000.
Major Resistance Levels – $46,500, $46,700 and $47,000.

Joe Erickson

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