BTC Technical Analysis: Psychological Level of $46000 Remains Substantial
Table of contents
Let us see the technical analysis of BTC.
Past Performance of BTC
The yearly return in BTC has been so far around 109%. Moreover, in the previous week, the BTC has traded between a low of $45,598.44 and a high of $49,473.96, making a rise of 7.3% during the week. However, it has moved lower by almost 1% during the last 24 hours.
BTC Technical Analysis
At the time of writing, BTC is trading at $46,441 and has been falling since last week. In the one-day chart for daily prices, a bearish day saw it fall to an early morning intraday low of $45,220. It shrugged off the first major support level at $45,134 and rallied to a late morning intraday high of $47,200, falling short of the first major resistance level at $46,633. However, it fell back below $46,500 levels before finding support.
For a reversal in the trend, BTC needs to avoid the $46,626 pivot and try to hit the first major resistance level at $47,730. Moreover, volume support from the overall market is needed to break out from $47,500 levels.
The On-balance Volume is at 3.47 million and is going in a downwards direction. This shows the downturn in volume is in line with the prices.
RSI is at 36%, near the oversold zone. The BTC price saw a death cross, a market indicator that occurs when a short-term moving average slips below a long-term moving average. Here, the 20-day exponential moving average (20-day EMA) will close below its 200-day exponential moving average (200-day EMA).
The MACD indicator shows the MACD line and the Signal line meeting exactly at a point and there is no turn of the trend, rather the negativity will sustain. Therefore, traders have to wait until a clear trend is seen.
Price Trends for the Day-Ahead and Tomorrow
Along with the overall market rally, the first major resistance is at $48,000 and can happen in a week's time. Moreover, if a rally happens above the first major resistance, it can show resistance at $50,000 levels before any pullback. The second major resistance level is at $48,586.
For the next few days, if it falls through, the $46,626 pivot will be the first major support level and then the second support level to watch is $45,770. Unless a large red day happens, BTC should steer clear below $44,000 levels. Notably, the third major support level at $44,666 and the 38.2% FIB of $44,144 should limit the downside.
