TA: Bitcoin Turns Red: Why BTC Bears Remain In Control Below $50K
Bitcoin extended decline below the $47,000 support zone against the US Dollar. BTC could correct lower, but the bears might remain active near $48,000.
- Bitcoin declined further below the $48,000 and $47,000 support levels.
- The price is now trading well below $48,000 and the 100 hourly simple moving average.
- Earlier, there was a break below a major rising channel with support near $49,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is correcting losses, but there are a lot of hurdles on the upside near $48,000.
Bitcoin Price Breaks Key Support
Bitcoin price failed to stay above the $50,000 support zone. As a result, there was a sharp bearish reaction and BTC settled below the $50,000 pivot level.
There was a break below a major rising channel with support near $49,400 on the hourly chart of the BTC/USD pair. The pair even broke the $47,000 support level and settled well below the 100 hourly simple moving average.
A low was formed near $45,759 and the price is now correcting losses. Bitcoin price is now trading near the 23.6% Fib retracement level of the downward move from the $50,788 swing high to $45,759 low. An immediate resistance on the upside is near the $47,400 level.
Source: BTCUSD on TradingView.com
The first major resistance is near the $48,250 level. It is near the 50% Fib retracement level of the downward move from the $50,788 swing high to $45,759 low. A proper break above the $48,250 resistance could open the doors for more upsides. The next key resistance is near the $50,000 level, above which the price may possibly gain momentum.
More Losses In BTC?
If bitcoin fails to clear the $48,250 resistance zone, it could continue to move down. An immediate support on the downside is near the $46,500 level.
The first major support is now forming near the $46,000 level. A downside break below the $46,000 support may perhaps push the price towards the $45,500 support. Any more losses could lead the price towards the $45,000 support zone in the near term.
Hourly MACD – The MACD is slowly losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.
Major Support Levels – $46,250, followed by $46,000.
Major Resistance Levels – $47,400, $48,000 and $48,250.
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