Bitcoin Plunges to $44,000 Low; Risks Further Decline if It Loses Current Support

The price of bitcoin (BTC) has fallen to a low of $45,117 after being pushed back from a high of $48,800. The cryptocurrency has fallen into the bearish trend zone after dropping below the moving averages.

There is a price scramble above $45,000, with buyers defending the current support and driving the BTC price higher. If buyers successfully hold it, Bitcoin will resume its upward momentum and retake the resistance at $48,800. A rally above $50,000 is possible if resistance at $48,800 is broken. However, Bitcoin is trading in the downtrend zone, which makes it vulnerable to further downside. A break below $45,000 support would give sellers the edge to push Bitcoin to the low of $43,444. At the time of writing, the cryptocurrency is trading at $45,597.

Bitcoin indicator reading

BTC price is below the 21-day line SMA and the 50-day line SMA, indicating further downside. Bitcoin has fallen to level 45 on the Relative Strength Index for period 14. The cryptocurrency is now in a downtrend and may fall further. The price of BTC is now below the 20% range of the daily stochastic. The cryptocurrency is now trading in the oversold zone of the market.

Technical indicators:

Major Resistance Levels – $65,000 and $70,000

Major Support Levels – $40,000 and $35,000

What is the next direction for BTC/USD?

Bitcoin has resumed its downward movement after failing to hold above the $48,800 resistance. The price of BTC has fallen below the support at $45,000. Meanwhile, the downtrend from September 19 has shown a candlestick testing the 50% Fibonacci retracement level. The retracement suggests that the BTC price will fall to the 2.0 Fibonacci extension level or the $45,290.9 level. The price action shows that the BTC price may fall to a low of $44,429.90.

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.

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