TA: Bitcoin Consolidates Below $50K: What Could Trigger A Sharp Decline

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Bitcoin is struggling to clear the $50,000 resistance zone against the US Dollar. BTC could decline heavily if it stays below $50,000 for a long time.

  • Bitcoin is struggling and showing bearish signs below the $50,000 resistance.
  • The price is now trading just below $49,000 and the 100 hourly simple moving average.
  • There was a break below a key rising channel with support near $49,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must settle above the $50,000 level to start a steady increase in the near term.

Bitcoin Price Faces Resistance

Bitcoin price started a recovery wave from the $47,000 support zone. BTC climbed above the $48,500 and $49,000 resistance levels. It even broke the $50,000 zone and the 100 hourly simple moving average.

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However, there was no upside continuation above $50,800. A high was formed near $50,788 and the price started a fresh decline. There was a clear move below the $50,000 level. The price declined below the 50% Fib retracement level of the upward move from the $46,943 swing low to $50,788 high.

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Besides, there was a break below a key rising channel with support near $49,500 on the hourly chart of the BTC/USD pair. Bitcoin is now trading just below $49,000 and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

An immediate resistance on the upside is near the $49,200 level. The first major resistance is near the $49,500 level. The main resistance is near the $50,000 zone. A daily close above the $50,000 level could open the doors for more upsides. The next key resistance is near the $50,800 level, above which the price may possibly rise towards the $52,000 level.

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More Losses In BTC?

If bitcoin fails to clear the $50,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $48,500 level.

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The first major support is now forming near the $48,400 level. It is near the 61.8% Fib retracement level of the upward move from the $46,943 swing low to $50,788 high. A downside break below the $48,400 support may perhaps push the price towards the $47,000 breakdown support.

Technical indicators:

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

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

Major Support Levels – $48,400, followed by $47,000.

Major Resistance Levels – $49,200, $50,000 and $50,800.

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Author: Aayush Jindal


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