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TA: Why Bitcoin Price Is Signaling More Downsides Below $47K

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Bitcoin price started a downside correction from $50K against the US Dollar. BTC could extend its decline below the $47,600 support zone in the near term.

  • Bitcoin failed to gain strength above $50,000 and started a downside correction.
  • The price is now trading below $48,500 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $48,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could extend its decline as long as it is below the $49,000 resistance zone.
Bitcoin Price Corrects Lower

Bitcoin price failed to settle above the $50,000 zone and started a steady decline. BTC broke the $49,000 support level and settled below the 100 hourly simple moving average.

The price even broke the $48,500 support level and spiked below $47,800. A low is formed near $47,600 and the price is now consolidating losses. An immediate resistance is near the $48,300 level. It is near the 23.6% Fib retracement level of the downward move from the $50,519 high to $47,611 low.

The first major resistance is near the $48,800 level. There is also a key bearish trend line forming with resistance near $48,800 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

On the downside, the $47,600 level is a short-term support. The first key support is near the $47,300 level. If there is a downside break below the $47,300 level, the price could continue to move down. The next major support is near the $46,800 level. Any more losses could open the doors for a move towards the $46,000 support zone in the near term.

Fresh Increase in BTC?

If bitcoin stays above the $47,000 support zone, it could start a fresh increase. On the upside, an immediate resistance is near the $48,300 level.

The first key resistance is near the $48,800 level and the trend line. The 50% Fib retracement level of the downward move from the $50,519 high to $47,611 low is also near the trend line resistance. A close above the trend line could set the pace for a decent increase towards the $50,000 level.

Technical indicators:

Hourly MACD – The MACD is 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 – $47,600, followed by $47,300.

Major Resistance Levels – $48,300, $48,800 and $49,000.


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