Bitcoin Struggles below $48,000 High as it Tumbles to the Downside

Dec 20, 2021 at 11:50 // News
Author
Coin Idol
BTC price corrected to the high of $52,000 but was rejected

Bitcoin (BTC) has fallen into a narrow range between $47,000 and $50,000. Today, the BTC price is trading at $46,589 as of press time. Buyers are struggling to push the price above the $47,000 support level.

Bitcoin's bearish scenario began after the price plummeted on December 4. On December 7, the BTC price corrected to the high of $52,000 but was rejected. It began a series of lower highs and lower lows. 

From the bearish pattern, a lower high at $52,000 retraced to a lower high at $48,000 on December 19. The cryptocurrency is now trading in a tight range below the $48,000 high. When cryptocurrencies trade in a tight range, there is usually a price dip or rally. If Bitcoin bounces above the $46,000 support, the market will rally above the $50,000 resistance. Conversely, if the price collapses, the market will drop sharply to the low of $41,000.

Bitcoin indicator reading

Bitcoin has fallen to the low of $46,589 as it reaches level 36 of period 14 of the Relative Strength Index. Bitcoin is in a downtrend and approaching the oversold area of the market. The moving averages of the 21-day line and the 50-day line are sloping south. The moving average of the 21-day line represents resistance for Bitcoin.

BTCUSD(_Daily_Chart_)_-_December_20.png

Technical indicators:  

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

Major Support Levels - $60,000 and $55,000 

What is the next direction for BTC/USD?

Bitcoin is in a downtrend. The cryptocurrency risks another decline if it loses support at $46,000. Bitcoin can easily rebound to the previous low of either $41,634 or $39,678. It is unclear if Bitcoin will rally at the current low. Perhaps this will catapult the largest cryptocurrency asset out of the downward correction.

BTCUSD(4_Hour__Chart)_-_DECEMBER_20.png

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.

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