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New York
January 20, 2022
Analysis

What Could Trigger A Sharp Decline

Bitcoin is struggling to clear the $50,000 resistance zone in opposition to the US Dollar. BTC might decline closely if it stays beneath $50,000 for a very long time.

  • Bitcoin is struggling and exhibiting bearish indicators beneath the $50,000 resistance.
  • The price is now buying and selling just under $49,000 and the 100 hourly easy transferring common.
  • There was a break beneath a key rising channel with help close to $49,500 on the hourly chart of the BTC/USD pair (information feed from Kraken).
  • The pair should settle above the $50,000 stage to begin a gentle improve within the close to time period.

Bitcoin Price Faces Resistance

Bitcoin price began a restoration wave from the $47,000 help zone. BTC climbed above the $48,500 and $49,000 resistance ranges. It even broke the $50,000 zone and the 100 hourly easy transferring common.

However, there was no upside continuation above $50,800. A excessive was shaped close to $50,788 and the price began a recent decline. There was a transparent transfer beneath the $50,000 stage. The price declined beneath the 50% Fib retracement stage of the upward transfer from the $46,943 swing low to $50,788 excessive.

Besides, there was a break beneath a key rising channel with help close to $49,500 on the hourly chart of the BTC/USD pair. Bitcoin is now buying and selling just under $49,000 and the 100 hourly easy transferring common.

Bitcoin Price

Source: BTCUSD on TradingView.com

An fast resistance on the upside is close to the $49,200 stage. The first main resistance is close to the $49,500 stage. The essential resistance is close to the $50,000 zone. A day by day shut above the $50,000 stage might open the doorways for extra upsides. The subsequent key resistance is close to the $50,800 stage, above which the price could presumably rise in direction of the $52,000 stage.

More Losses In BTC?

If bitcoin fails to clear the $50,000 resistance zone, it might proceed to maneuver down. An fast help on the draw back is close to the $48,500 stage.

The first main help is now forming close to the $48,400 stage. It is close to the 61.8% Fib retracement stage of the upward transfer from the $46,943 swing low to $50,788 excessive. A draw back break beneath the $48,400 help could maybe push the price in direction of the $47,000 breakdown help.

Technical indicators:

Hourly MACD – The MACD is slowly gaining tempo within the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is at the moment beneath the 50 stage.

Major Support Levels – $48,400, adopted by $47,000.

Major Resistance Levels – $49,200, $50,000 and $50,800.

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