BTC is in danger of another drop to $50,000

After a significant downtrend, Bitcoin found strong support near the $50,000 threshold and experienced a notable rebound.

However, the price has now approached a substantial resistance region around the 200-day moving average at $61,000, which could complete a pullback.

Technical Analysis

By Shayan

The daily chart

A close examination of Bitcoin’s daily chart reveals a significant increase in buying pressure and demand near the critical $50,000 support region, resulting in a substantial bullish bounce.

Subsequently, BTC moved back towards a key resistance region, which spanned the 200-day moving average at $61,000 and the psychological resistance at $60,000. This key area is likely to be oversupplied, which may lead to substantial selling pressure and halt further upward momentum.

If the price faces a rejection here, it could complete the pullback, leading to another impulsive bearish leg towards the crucial $50,000 threshold.

However, there is also the possibility of a sudden breakout above this critical juncture, which can trigger a short-lived event and lead to an impulsive rally. Bitcoin price action near the critical $60,000 region will be crucial in determining its next major move.

Source: TradingView The 4-hour chart

On the 4-hour chart, Bitcoin price action shows that the pool of sell-side liquidity below $50,000 was absorbed and selling pressure was met with substantial demand and buying interest.

This led to a major bullish bounce, initiating an impulsive rally. A bullish divergence between the price and the RSI indicator also indicated the steady increase in buying pressure, acting as a catalyst for the uptrend.

However, the price has now reached a notable resistance region, marked by the Fibonacci levels of 0.5 ($59k) and 0.618 ($62k).

This area has the potential to stop the bullish momentum and bring the price back towards the $50,000 level. If Bitcoin faces a rejection near this resistance, the recent rally could be considered a temporary correction, indicating a possible continuation of the initial downtrend in the coming days.

Source: TradingView chain analysis

By Shayan

Whales are key players in the Bitcoin market. Your buying and selling activity significantly influences price fluctuations and general trends. Analyzing its behavior is crucial to understanding the direction of the market.

The accompanying chart presents the realized price levels for both short-term and long-term whales, which serve as important support and resistance areas.

Currently, Bitcoin has fallen below short-term whale buy levels, and the price has dropped towards $49,000 and $50,000. However, there has been a pick-up in demand and the price is now moving back towards the short-term realized price range between $64,000 and $65,000.

This region is critical as it could act as substantial resistance. Some whales, who may be eager to exit their positions as they approach their break-even levels, could lead to selling pressure. Price action in this area will be critical in determining the next direction of the Bitcoin market. If the sellers dominate, it could indicate a continuation of the downtrend; otherwise, a successful break above this resistance could lead to further bullish momentum.

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