Credit: Original article published by newsbtc.

Bitcoin price declined over $10,000 against the US Dollar after Elion Musk’s tweet. BTC is now correcting losses, but the previous support near $52,000 could act as a hurdle.

  • Bitcoin started a major decline from well above $55,000 and it even traded close to $45,000
  • The price is now trading well below $55,000 and the 100 hourly simple moving average.
  • There was a break below a key rising channel with support near $57,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is correcting losses, but the bulls might struggle near $52,000 and $53,000.

Bitcoin Price Dives 20%

Bitcoin failed to clear the $58,500 resistance and reacted to the downside. BTC’s decline was got pace after Elion Musk’s tweet about bitcoin mining and not accepting it as payment.

It sparked a strong bearish move below the $52,000 and $50,000 support levels. There was a break below a key rising channel with support near $57,000 on the hourly chart of the BTC/USD pair. The pair even dived towards the $45,000 level on Kraken. It is now trading well below $55,000 and the 100 hourly simple moving average.

A low is formed near $45,000 and the price is now recovering higher. It broke the $47,000 and $48,500 resistance levels. Besides, there was a break above the 23.6% Fib retracement level of the recent decline from the $58,000 swing high to $45,000 swing low.

Source: BTCUSD on TradingView.com

An immediate resistance on the upside is near the $51,500 level. It is near the 50% Fib retracement level of the recent decline from the $58,000 swing high to $45,000 swing low. The main resistance is now forming near the $53,000 zone (the previous support). A close above $52,000 and $53,000 is needed to start a decent increase.

Fresh Drop in BTC?

If bitcoin fails to clear the $52,000 resistance or $53,000, it could start a fresh decline. An initial support on the downside is near the $48,500 level.

A downside break below the $48,500 support zone could restart the decline. The next major support is near the $47,400 level. Any more losses might call for a fresh test of the $45,000 support zone in the near term.

Technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now recovering from the oversold zone.

Major Support Levels – $48,500, followed by $47,400.

Major Resistance Levels – $51,500, $52,000 and $53,000.

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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