Bitcoin (BTC) Breaks Vital Support; Why Downswings Might Extend

• Bitcoin has dropped more than 4%, moving beneath the $46K support barrier.
• BTC has its movements beneath $45.5K and 100Hr Simple Moving Average.
• 1Hr chart shows a break beneath a vital breakout setup with support around $46.8K.
• The bellwether crypto might extend the downside to test the support at $43.2K in the short term.

Bitcoin could not steady beyond the support floor of $46K. The crypto is plunging and may dip towards the $43.2K foothold.

Bitcoin Price Drops beneath Support

Bitcoin price launched a crucial downtrend after the crypto struggled to steady beyond $46.5K and $46.4K. The largest crypto by value dropped beneath the $46K support to enter into a near-term bearish territory.

Bitcoin saw a substantial move under the 50% Fibonacci retracement zone of the upside move from $44,470 to $$8,200. Bears managed to push prices beneath the $45.5K barrier and the 100Hr Simple Moving Average.

Moreover, the BTC/USD’s 1hr chart shows a break under a vital breakout formation with support at $46.8K. For now, Bitcoin trades beneath the 76.4% Fibonacci retracement area of the upsurge to $48.2K from the $44,470 lows.

The closest support barrier to the downside stands near $44,450. A drop beneath this area will see BTC exploring the $44K mark. Nevertheless, Bitcoin has its primary support at $43,320. It’s near the 1.236 Fibonacci extension zone of the $44,470 – 48.2K. A downward break below the $43,320 footing might send Bitcoin lower to $42K in the short term.

Bitcoin Upside Capped?

Bitcoin can attempt an upward move if it steadies beyond the support level of $44,450. The closest resistance to the upwards sits around the $45.5K. An upswing past this area will have the crypto exploring the hurdles at $45.8K. Meanwhile, the crucial hurdle forms near $46,350, beyond which BTC might witness steady rises. That might see the bellwether crypto testing $47.2K and 100Hr SMA. Remember, broad market sentiment remains crucial for BTC’s price trends.

BTC Technical Indicators

• 1-hr Moving Average Convergence Divergence gradually gains momentum inside the bearish area.
• 1-hr Relative Strength Index stays in the oversold area.
• Massive support zones: $44,450, then $43,320
• Massive resistance zones: $45.5K, $45.8K and $46,350.

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