The leading cryptocurrency Bitcoin started a fresh decline below the $50,000 support against the US Dollar the other day. With these consecutive drops in the leading cryptocurrency, BTC risks a larger drop below $47,500 in the near term.
Bitcoin started a fresh decline below the $50,000 and $49,500 support levels.
The price is trading below the $49,000 level and the 100 hourly simple moving average.
There was a break below a bearish continuation pattern with support near $49,200 on the hourly chart of the BTC/USD pair.
The pair might correct higher, but upsides might be limited above $49,200 in the near term.
Bitcoin Price Gains Bearish Momentum
Bitcoin, the largest cryptocurrency in terms of market value, managed to rise above the $ 50,000 level with the increase it started recently, but failed to gain strength in this region and started a new decline below the $ 50,000 support. However, BTC traded below the $49,200 and $49,000 levels to move into a bearish zone.
There was also a break below a bearish continuation pattern with support near $49,200 on the hourly chart of the BTC/USD pair. BTC traded below the $48,500 support zone and the price declined to the $47,200 level.
With this sharp drop in Bitcoin, a low of around $47,305 was formed and the price is currently consolidating. In addition, if we look at the critical support and resistance points to follow in Bitcoin, an immediate upside resistance is near the $48,200 level, while the first major resistance is forming near the $48,500 level. The next key resistance could be $49,800.
Besides, the 50% Fib retracement level of the recent decline from the $52.111 high to $47,305 low is near the $49,700 zone to act as resistance. Therefore, a clear move above the $49,800 resistance zone could start a fresh increase. The next major stop for the bulls is likely near the $51,200 level.
More Drops Possible in BTC?
However, if Bitcoin fails to rise above $49,200, it could continue to move lower. Therefore, if we look at the levels to watch here, the first support on the downside is near the $47,500 region, while the first major support appears around $47,200.
Therefore, a downside break below the $47,200 level could pull the price back towards the $46,500 support. A continuation of the decline in Bitcoin could likely lead the price towards the $45,500 support zone.
Hourly MACD – The MACD is slowly losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 40 level.
Major Support Levels: $47,200 followed by $46,500.
Major Resistance Levels: $48,200, $48,800 and plunges 49,800.