Bitcoin Plunges below $50K Support Level as Bears Threaten to Short to $44K Low

Bitcoin has plunged to $46,601 low and pulled back immediately. This sharp drop was a result of buyers failing to push BTC price above the $58,000 resistance level. The $58,000 support has been the crucial price level for the resumption of upside momentum.

In previous price action, the bulls were able to breach the resistance level but fail to sustain the bullish momentum above the $60,000 psychological price level. 

Today, the downtrend is likely to continue as BTC price faces another rejection at $51,000. The market may decline to $45,000 low. On the upside, the bulls have an uphill task to push BTC price upward. Buyers will first reclaim the $50,000 psychological price level and push Bitcoin above $57,000 high. BTC price has fallen to the low of $48,793 at the time of writing.

Bitcoin indicator reading  

The BTC price has broken below the 21-day and 50-day SMAs, suggesting that Bitcoin is in the bearish trend zone. BTC/USD is now capable of falling on the downside. The market has fallen to level 37 of the Relative Strength Index period 14. It indicates that the price is in the downtrend zone and BTC price may fall.

Technical indicators:  

Major Resistance Levels – $65,000 and $70,000

Major Support Levels – $50,000 and $48,000

What is the next direction for BTC/USD?

BTC/USD is falling on the downside after it was range-bound between $50,000 and $60,000 for over a month. The current selling pressure is likely to continue on the downside. On May 10 downtrend, a retraced candle body tested the 38.2%% Fibonacci retracement level. The retracement implies that Bitcoin will fall to level 2.618 Fibonacci extension or the low of $44,770. 00. From the price action, the market has declined to the low of $48,793.

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.