TA: Bitcoin Prints Bearish Pattern, Why BTC Could Drop To $42K

Bitcoin extended decline below the $45,000 support against the US Dollar. BTC remains at a risk of a move towards the $42,000 support zone.

• Bitcoin gained bearish momentum after it broke the $45,000 support zone.
• The price is trading below $45,000 and the 100 hourly simple moving average.
• There are two bearish trend lines forming with resistance near $43,900 and $46,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could extend decline towards the $42,000 level in the near term.

Bitcoin Price Dives Over 5%

Bitcoin price started a major decline from the $47,000 resistance zone. BTC traded below the $46,000 and $45,500 support levels to move into a bearish zone.

The price even broke the $45,000 support level and settled below the 100 hourly simple moving average. Finally, it spiked below the $43,000 level and traded as low as $42,904. It is now consolidating losses near the $43,000 level.

On the upside, an immediate resistance is near the $43,800 level. It is near the 23.6% Fib retracement level of the recent decline from the $46,845 swing high from the $42,904 low. There are also two bearish trend lines forming with resistance near $43,900 and $46,400 on the hourly chart of the BTC/USD pair.

The next resistance could be near $44,250. The main resistance is now forming near $45,000 or the 50% Fib retracement level of the recent decline from the $46,845 swing high from the $42,904 low.

Source: BTCUSD on TradingView.com

Bitcoin price must clear the $44,800 and $45,000 resistance levels to start a fresh increase. In the stated case, the price may perhaps rise towards the $46,000 resistance zone.

More Losses in BTC?

If bitcoin fails to clear the $44,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $43,000 level.

The next major support is seen near the $42,800 level. A downside break below the $42,800 support zone could increase selling pressure. In the stated case, the price could drop towards the $42,000 support in the near term. The next major support might be $41,200.

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 well below the 50 level.

Major Support Levels – $43,000, followed by $42,000.

Major Resistance Levels – $43,800, $44,000 and $45,000.

from NewsBTC https://ift.tt/jPplebT