Bitcoin (BTC) Corrects; Why Levels beneath $46K May Limit Dips

ByDawn Pipkin

Mar 30, 2022
  • BTC gained strength beyond $47.5K to trade around the $48.2K highs.
  • Meanwhile, BTC trades above $46.5K and 100hr SMA.
  • The hourly price chart shows a breakout setup emerging with $46.3K support.
  • Maintaining price reactions above the $46K support floor could support new surges.

Bitcoin (BTC) struggled to gain momentum beyond $48K. The bellwether crypto is correction acquired gains, but levels below $46K might limit upcoming dips.

BTC Price Still Supported

Bitcoin recorded extended upticks beyond the resistance barrier of $47.5K. The world’s leading cryptocurrency even broke the $48K resistance area to trade around highs of $48.2K. However, the latest sessions saw BTC on a downward move from the $48.2K high.

The downswing saw the crypto dropping beneath the 23.6% Fibonacci retracement area of the upswing from $44,468 to $48,200. Nevertheless, the digital coin remains beyond the 100-hour Simple Moving Average.

Moreover, the BTC 1hr chart shows a vital breakout setup with the support of around $46.3K. Meanwhile, $47,600 stands as an immediate resistance to the upside.

The following massive resistance might emerge around the triangle trend-line and $47.8K. A decisive break plus a close beyond the triangle resistance may push BTC higher to $48.2K. Overcoming this obstacle will see Bitcoin climbing towards the $49K obstacle. More upticks here will see BTC exploring the coveted $50,000.

Drops in Bitcoin?

Bitcoin might witness further drops if it fails to overpower the resistance zone at $47,800. The crypto will hit the first closest downside support floor at $47K. Losing momentum will trigger a drop towards the next foothold at $46.8K.

Nevertheless, the crypto has vital support forming around the $46,400 mark and the triangle trend-line. It’s near the 50% Fibonacci retracement of the upswing to $48,200 from $44,468.

A downward move beneath $46.3K support may send Bitcoin towards $46K and the 100-hour Simple Moving Average. Any decline may see bulls under massive pressure in the short term.

Bitcoin Technical Indicators

1hr MACD gradually gains pace within the bearish region.

1hr RSI stays beneath the 50-mark.

Massive support zones – $46,800, then $46,300

Crucial resistance zones – $47.8K, $48K and $48.2K

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