Bitcoin is Stuck below $50,000; A Sharp Decline is Imminent

Bitcoin (BTC) is stuck in a narrow range, fluctuating below the psychological $50,000 mark. Today, the cryptocurrency is declining, hovering above the $49,000 price level.

The price movement is limited between the levels of $47,000 and $50,000. During the last price movement, the BTC price moved in a range between $47,000 and $52,000. 

In the current price action, Bitcoin is trading in a tight range that can lead to a sharp decline or a price breakout. Sellers have tested the current support several times but have not been able to break it. On the other hand, bulls retested resistance at $52,000 once but were rejected. The upside of the price is limited below $50,000. The limitations may mean that a price collapse or breakout is imminent.

Bitcoin indicator reading

Bitcoin is at level 37 of the Relative Strength Index of period 14. The price of BTC is in the downward zone and consolidating below the $50,000 price level. On the downside, a further decline is possible. The 21-day moving average line and the 50-day moving average line are pointing south, indicating a downtrend. Bitcoin is below the 50% area of the daily stochastic. The cryptocurrency is in a bearish momentum.

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?

BTC price is still in a downward correction. The price movement was insignificant as Bitcoin remains below the $50,000 high. Meanwhile, on November 27, the downtrend tested the 78.6% Fibonacci retracement level. The retracement suggests that BTC will fall to the 1,272 Fibonacci Extension level or $49,274.40. Today the market is testing the Fibonacci extension.

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.