BTC bulls are trying to resist the downward pressure that has seen Bitcoin trade as low as $47,600.
The price of Bitcoin is down 2.1% at the time of writing, trading around $48,475 after rejecting highs above $50,000. The value of the number one crypto currency is below a critical resistance level, and further losses could occur if its price fails to stay above $49,000.
BTC Price Outlook
Bitcoin’s price has corrected to lows of $47,600, cutting off gains made when it reached a multi-month high above $50,000. The flagship crypto-currency recovered some of its daily losses, with buyers testing and breaking above the 0.236 Fibonacci retracement level ($48,282).
Bitcoin’s price even touched highs of $48,622, though profit-taking limited the rise, and prices plunged below $48,400 again.
To continue higher and recover most of the recent losses, the BTC/USD pair needs a clear break above horizontal resistance around $48,650 and the 0.382 Fibonacci retracement level of the decline from the highs of $50,491 to the lows of $47,600 to $48,705.
The 20-4 hour exponential moving average at $48,727 is the next barrier. The confluence of barriers is a critical supply area above which increased buying could take bulls to the 0.618 Fib level ($49,387).
BTC/USD 4-hour chart. Source: TradingView
The 4-hour chart shows that the bullishness may not have the upper hand for now, with the Relative Strength Index looking to climb towards the 50 mark. The 20 EMA is also trending lower, reinforcing the downside potential for the BTC/USD pair in the near term.
If the price breaks below the Fib level of 0.236, the bulls will lean on the initial support around $48,000. Here, buyers could still drive a breakout to the upside and recover the highlighted resistance areas. However, if further downward pressure forces the bulls to go lower, the next anchor point would be the 50-4 hourly moving average ($47,618).