June 22, 2021

Bitcoin Price Consolidates Near $50K, Why BTC Bulls Could Fail Near $52.5 K

2 min read

Bitcoin rate extended its decrease below the $50,000 assistance versus the US Dollar. BTC is now combining losses and it remains at a threat of more drawback listed below $48,000.

  • Bitcoin decreased greatly below the $52,000 and $50,000 assistance levels.
  • The price is now trading well listed below $52,000 and the 100 easy moving typical (4-hours).
  • There is a key bearish pattern line forming with resistance near $52,800 on the 4-hours chart of the BTC/USD pair (information feed from Kraken).
  • The pair could remedy losses, however it might face resistance near $52,000 and $52,500.

Bitcoin Price Turns Red

This past week, bitcoin rate saw a stable decline from well above $60,000 against the United States Dollar. The BTC/USD pair broke lots of crucial supports near $55,000 and $52,500 to move into a bearish zone.

The rate even broke the $50,000 level and it settled listed below the 100 easy moving typical (4-hours). It traded to a new weekly low at $47,511 before it began combining losses. There was a small recovery above the $48,000 and $48,500 levels.

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

Bitcoin Price

 Source: BTCUSD on TradingView.com

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

A successful close above the $52,000 and $52,500 resistance levels might 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 danger of more losses. The very first major support is near the $48,200 and $58,000 levels.

The next significant support is near the $57,500 level. Anymore losses might require a fresh drop towards the $46,000 assistance level. In the stated case, there are even possibilities of a drop towards the essential $45,000 support zone in the near term.

Technical indications

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 listed below the 50 level.

Major Support Level –– $47,500

Significant Resistance Level –– $52,500