TA: Bitcoin Rejects 50k: Why It Is Vulnerable To Below 48k

Aayush Jindal

1 year ago

2 mins read

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Bitcoin is struggling to clear the $50,000 resistance zone against the US Dollar. BTC could decline heavily if there is a clear move below the $47,300 level.

Bitcoin is struggling and showing bearish signs below the $50,000 resistance.
The price is now trading below $49,500 and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $49,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh increase if it is able to clear the $50,000 level.

Bitcoin Price Holds Key Support

Bitcoin price started a fresh decline from the $52,000 resistance zone. BTC broke the $49,000 support level and settled below the 100 hourly simple moving average.

There was also a move below the $48,000 level, but the bulls were active near the $47,300 zone. A low is formed near $47,298 and the price is now correcting losses. There was a move above the $48,000 resistance zone.

Bitcoin climbed above the 23.6% Fib retracement level of the downward move from the $51,955 swing high to $47,298 low. The price is now trading below $49,500 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $49,000 level.

The next major resistance is near the $49,500 level. There is also a major bearish trend line forming with resistance near $49,900 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The trend line is close to the 50% Fib retracement level of the downward move from the $51,955 swing high to $47,298 low. A clear break above the $49,500 resistance zone could open the doors for more upsides. The next key resistance is near the $50,000 level, above which the price may possibly start a steady increase.

More Losses In BTC?

If bitcoin fails to clear the $49,500 resistance zone, it could continue to move down. An immediate support on the downside is near the $48,000 level.

The first major support is now forming near the $47,300 level. A downside break below the $47,300 support may perhaps increase selling pressure. The next stop for the bears might be $46,000.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.

Major Support Levels – $48,000, followed by $47,300.

Major Resistance Levels – $49,500, $50,000 and $52,000.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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