Bitcoin Price Drop, Why Bulls May Have Difficulty In The Near-term

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2022-01-07 10:44:30

Bitcoin started a fresh decline from the $48,000 resistance against the US Dollar. BTC remains at risk of a sharp drop below the $46,000 support area.

  • Bitcoin started a fresh decline after failing to break above the $48,000 resistance level.
  • The price is trading below $47,000 and the 100 hourly simple moving average.
  • There is a key downtrend line forming with resistance near $47,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair remains at risk of a serious drop if there is a clear move below $46,000.

Bitcoin price remains at risk

Bitcoin price failed to break above $48,000 and start another drop. BTC has been trading below the $47,500 and $47,200 levels to move further into the bearish zone.

The price even moved below the $46,500 level and the 100 hourly simple moving average. A low has been formed near $45,707 and the price is currently consolidating losses. It tested the 23.6% Fib retracement level of the recent decline from the $47,950 high to $45.707 low.

Source: Tradingview

Bitcoin price is currently trading below $47,000 and the 100 hourly simple moving average. The first major resistance on the upside is near the $46,850 level. It is near the 50% Fib retracement level of the recent decline from the $47,950 high to $45.707 low.

Besides, there is a key downtrend line forming with resistance near $47,100 on the hourly chart of the BTC/USD pair. A clear move above the $47,000 resistance area and the trend line could start a fresh rally. The next major resistance is near the $48,000 level. Any further gains could bring the price towards $48,500 in the near term.

Lost more BTC?

If bitcoin fails to recover above $47,000, it could continue to fall. Immediate support is near the $46,000 region. The first major support is near $45,800.

A break below $45,800 can push the price lower. In the stated case, the price could drop to $43,500 in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is currently accelerating in the bearish zone.

Hourly RSI (Relative Strength Index) – RSI for BTC/USD below the 50 level.

Key support levels – $46,000, followed by $45,800.

Key resistance levels – $46,800, $47,000 and $47,100.

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#Bitcoin #Price #Drop #Bulls #Difficulty #Nearterm

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