Bitcoin price extended its decline below the USD 50,000 support against the US dollar. BTC is now consolidating losses and is still at risk of more downside below USD 48,000.
- Bitcoin fell sharply below the USD 52,000 and USD 50,000 support levels.
- The price is now trading well below USD 52,000 and the simple 100 (4 hours) moving average.
- A major bearish trendline is forming with resistance near USD 52,800 on the BTC / USD pair’s 4hr chart (data feed from Kraken).
- The pair could correct losses, but it could face resistance near USD 52,000 and USD 52,500.
Bitcoin price turns red
For the past week, bitcoin price saw a steady decline from well above $ 60,000 against the US dollar. The BTC / USD pair broke many key supports near USD 55,000 and USD 52,500 to move into a bearish zone.
The price even broke the USD 50,000 level and fell below the 100 simple moving average (4 hours). It traded to a new weekly low at $ 47,511 before starting to consolidate losses. There was a small rebound above the USD 48,000 and USD 48,500 levels.
There was a rebound above the 23.6% Fib retracement level from the recent drop from the high of $ 57,597 to the low of $ 47,511. It is now consolidating near the USD 50,000 level.
Source: BTCUSD on TradingView.com
On the upside, the price is facing a major resistance near the USD 52,000 and USD 52,500 levels. A major bearish trendline is also forming with resistance near $ 52,800 on the 4-hour chart of the BTC / USD pair. The trend line is close to the 50% Fib retracement level of the recent decline from the high of $ 57,597 to the low of $ 47,511.
A successful close above the USD 52,000 and USD 52,500 resistance levels could open the doors for another rise in the coming sessions.
More losses in BTC?
If bitcoin fails above the USD 52,000 level, there is a risk of more losses. The first major support is near the USD 48,200 and USD 58,000 levels.
The next big support is near the USD 57,500 level. For even more losses, a fresh drop to the USD 46,000 support level may be needed. In the case mentioned, there are even chances of a decline towards the key USD 45,000 support zone in the near term.
4 Hour MACD – The MACD for BTC / USD is losing momentum in the bearish zone.
4 Hour RSI (Relative Strength Index) – The RSI for BTC / USD is now well below the 50 level.
Major Support Level – USD 47,500
Major Resistance Level – $ 52,500