Credit: Original article published by newsbtc.

Bitcoin price extended its decline below the $50,000 support against the US Dollar. BTC is now consolidating losses and it remains at a risk of more downside below $48,000.

  • Bitcoin declined heavily below the $52,000 and $50,000 support levels.
  • The price is now trading well below $52,000 and the 100 simple moving average (4-hours).
  • There is a key bearish trend line forming with resistance near $52,800 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct losses, but it might face resistance near $52,000 and $52,500.

Bitcoin Price Turns Red

This past week, bitcoin price saw a steady decline from well above $60,000 against the US Dollar. The BTC/USD pair broke many important supports near $55,000 and $52,500 to move into a bearish zone.

The price even broke the $50,000 level and it settled below the 100 simple moving average (4-hours). It traded to a new weekly low at $47,511 before it started consolidating losses. There was a minor recovery above the $48,000 and $48,500 levels.

There was a recovery above the 23.6% Fib retracement level of the recent decline from the $57,597 high to $47,511 low. It is now consolidating near the $50,000 level.

Source: BTCUSD on TradingView.com

On the upside, the price is facing a major resistance near the $52,000 and $52,500 levels. There is also a key bearish trend line forming with resistance near $52,800 on the 4-hours chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the recent decline from the $57,597 high to $47,511 low.

A successful close above the $52,000 and $52,500 resistance levels could open the doors for a fresh increase in the coming sessions.

More Losses in BTC?

If bitcoin fails above the $52,000 level, there is a risk of more losses. The first major support is near the $48,200 and $58,000 levels.

The next major support is near the $57,500 level. Any more losses might call for a fresh drop towards the $46,000 support level. In the stated case, there are even chances of a drop towards the key $45,000 support zone in the near term.

Technical indicators

4 hours MACD – The MACD for BTC/USD is losing momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.

Major Support Level – $47,500

Major Resistance Level – $52,500

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

#Bitcoin #Crypto #Cryptocurrency

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