Bitcoin price is struggling below $50,000 against the US Dollar. BTC might decline heavily if there is no clear break above the $50,000 resistance zone.
Bitcoin Price Analysis
Bitcoin price started a fresh decline from the $52,000 resistance zone. BTC traded below the $50,000 and $50,000 support levels to move again into a bearish zone.
Earlier, the price recovered losses from the $42,350 support zone. It climbed above the 23.6% Fib retracement level of the downward move from the $59,120 swing high to $42,332 low. There was also a move above the $50,000 level and the 55 simple moving average (4-hours).
Finally, there was a spike above the $51,000 level. However, the bulls struggled to gain strength above the $52,000 zone. The 50% Fib retracement level of the downward move from the $59,120 swing high to $42,332 low also acted as a resistance.
On the upside, an initial resistance is near the $48,500 level. There is also a major bearish trend line with resistance near $49,000 on the 4-hours chart of the BTC/USD pair.
The main resistance is forming near the $50,000 zone. A close above the $50,000 zone is needed for a fresh increase. In the stated case, the price is likely to rise steadily and might even surpass the $52,000 level.
An immediate support on the downside is near the $47,500 level. The next key support is near the $46,000 level. If the price fails to stay above $46,000, it could extend losses in the near term. The next major support sits near $45,000, below which there is a risk of a move towards the $42,500 level.
Looking at the chart, bitcoin price is clearly trading below $50,000 and the 55 simple moving average (4-hours). Overall, the price could resume decline if it fails to clear the $50,000 resistance zone.
4 hours MACD – The MACD is now gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI is just near the 50 level.
Key Support Levels – $47,500 and $46,000.
Key Resistance Levels – $48,500, $49,000 and $50,000.
Source: Read Full Article