BTC Risks Dropping Below $45,000 With More Bearish Signals Showing

BTC risks dropping below $45,000 as the price failed to settle above the $50,000 against the US dollar. The cryptocurrency is now showing bearish signals and it seems that it could even drop lower so let’s take a closer look at today’s BTC price analysis.

Bitcoin started a fresh decline after it failed to clear the $1500 and the $52,000 resistance level with the price now trading below it and the 100 hourly simple moving average. There was a break below the key bullish trend line and the support of the $49,800 on the hourly chart of the pair that could move further towards $45K or even $42K if it remains in the red zone. Breaking above the $50K level, BTC recovered further above $51,000 but BTC faced a strong selling interest near the $52,000 soo the price hit the 100 hourly simple moving average at $52,000.

There was also a fresh bearish wave at the $50K support zone as the bears gained more strength, it resulted in breaking down of the bullish trend line with the support at $49,800 on the hourly chart of the pair. BTC risks dropping below after it broke the $46,228 level and it now started consolidating near the $48K level. The initial resistance on the upside is nearing the $47,500 level with the first major resistance nearing the $49,150 level and the close of the 50% fib retracement between the $52,088 high to $46,228 low.

The main resistnace formed near $50,700 and the 100 hourly simple moving average but it is close to the 76.4% fib retracement from the high of $52,088 to the low of $46,228. Closing above the $50K level, could open the doors for a break of $52,000 resistance. If BTC fails to continue higher above the $49,500 level, there will be more losses. Also, the initial support on the downside is near the $46,200 level. The first major support is near the $45,000 zone and if there’s a clear break below the $45,000 support, the price will drop towards $42,000 support.

The MACD is gaining momentum in the bearish zone while the RSI for the pair is well below the 50 level. As reported recently, Michael Saylor, the Microstrategy CEO, added that the company will keep on acquiring BTC with excess cash and could from time to time issue debt for equity securities with the use of proceeds to purchase even more BTC. The company’s massive BTC investment started turning a lot of attention in 2020 as it paved the way for institutional adoption for cryptocurrency.