The BTC / USD pair traded at lows near the key support of $ 46,300, with the technical outlook suggesting further losses.
The benchmark cryptocurrency is trading around $ 47,100 at the time of writing, which is about 2% and 4.8% down in the last 24 hours and week respectively. BTC / USD may continue to come under bearish pressure in the near term after this latest rejection, with negative sentiment likely to increase as market dominance falls towards 40%.
In the event of further sales, Bitcoin could fall towards the support level of $45,000. If the price falls below $ 45,000, it could plunge towards $ 40,000, according to price projections shared by a technical analyst.
Bitcoin price outlook
Bitcoin’s downward movement follows the price’s movement towards the top of a bearish triangle configuration formed on the daily chart. The drop below the triangle support line added downward pressure, with the inability to break through the $ 49,000 resistance area over the weekend that saw BTC / USD hit a low of $46,700.
Daily chart of BTC/USD. Source : TradingView
Although the price of the cryptocurrency remains in an overall uptrend, the bearers look set to retest the key support level at $46,300. This move would open BTC / USD to a potential slip to the next anchor point around the Fibonacci retracement level of 0.236 from the high oscillation of $ 29,501 to $ 50,505, currently located at $45,548.
If the price breaks down, BTC bulls may have to defend recent gains around the 0.382 Fib level ($42,481). It is possible that Bitcoin will hit the 50-day moving average ($41,552) and the Fib level 0.5 ($40,003).
These low points coincide with the forecasts of technical analyst Kevin Wadsworth. In a recent interview with Kitco News, the co-founder of Northstar and Badcharts opined that while Bitcoin remains relatively bullish, it could seek support at the $ 40,000 level before rebounding to a new high.
In the short term, the bulls need to defend the $ 46,300 line to maintain the daily RSI’s suggested advantage above 50.
According to Wadsworth, BTC / USD could experience further buying pressure if the price breaks above $ 51,000, with a further rally likely to see prices peak between around late September and October. If the scenario comes true, the analyst predicts that the price of BTC could reach $ 100,000 before the end of the year.