Bitcoin (BTC) is in a downward correction. Today, sellers resumed selling pressure as it broke below $49,000 support.
On December 4, bitcoin bulls bought the dips as the price bounced back above $49,000 support. Buyers held above that support for two days before losing possession. Today, the market has fallen to $47,941 at the time of writing.
The BTC price is retesting support at $47,112, which is the historical price level from April 19. The downtrend will continue if this level is broken. In the meantime, Bitcoin is likely to retest the previous low of $42,000. The downtrend could reach the low of $40,000 if support at $42,000 is broken. On the other hand, if the support at $49,000 holds, Bitcoin will rise and retest the resistance at $59,000.
Bitcoin has fallen to the 30 level of the Relative Strength Index for period 14. This indicates that the market has reached bearish exhaustion. Bitcoin has fallen into oversold territory in the market. The BTC price has a bearish crossover as the 21-day moving average line falls below the 50-day moving average line. This indicates a sell order. Bitcoin is below the 30% area of the daily stochastic. The cryptocurrency is in a bearish momentum.
Key resistance levels - $65,000 and $70,000.
Key support levels - $60,000 and $55,000
According to the price indicator, Bitcoin has reached bearish exhaustion. Meanwhile, on November 27, the downtrend; a retracement candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that BTC will fall to the 1,272 Fibonacci Extension level or $49,528.20. The price action shows that sellers are trying to break the current support.
Disclaimer. This analysis and forecast are the personal opinions of the author 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.