TA: Bitcoin Plunges Below Key Support, Turn Sell On Rallies

Bitcoin declined sharply below the $45,500 support against the US Dollar. BTC could recover, but upsides might be limited above $45,000.

• Bitcoin gained pace below the key $45,500 support zone.
• The price is trading below $45,000 and the 100 hourly simple moving average.
• There is a crucial bearish trend line forming with resistance near $46,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might start recovery, but the bears might remain active near the $45,000 zone.

Bitcoin price failed to clear the $47,500 resistance zone and started a major decline. BTC declined heavily below the $46,000 and $45,00 levels.

The bears even pushed the price below the $43,500 level. A low is formed near $42,505 and the price is now consolidating losses. It is trading near the $43,500 level. It is facing resistance near the 23.6% Fib retracement level of the key decline from the $47,066 swing high to $42,505 low.

Bitcoin is trading below $45,000 and the 100 hourly simple moving average. An initial resistance is near the $44,000 level. The first major resistance on the upside is near the $44,800 level.

The 50% Fib retracement level of the key decline from the $47,066 swing high to $42,505 low is also near the $44,800 level. Besides, there is a crucial bearish trend line forming with resistance near $46,800 on the hourly chart of the BTC/USD pair.

A clear move above the $44,800 resistance zone could send the price towards the trend line. The next major resistance is near the $45,600 pivot zone. A close above $45,600 is needed for a fresh increase in the near term.

If bitcoin fails to recover above $44,800, it could continue to move down. An immediate support is near the $43,000 zone. The first major support is near $42,500.

A downside break below the $42,500 level could push the price further lower. In the stated case, the price may possibly decline towards the $41,000 level in the coming sessions. The next major support is near the $40,000 level.

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 $42,500.

Major Resistance Levels – $44,000, $44,800 and $45,600.