Bitcoin price fails to build $50K support as traders eye lower levels next
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A lot of Bitcoin enthusiasts in the cryptocurrency community had hoped that Bitcoin would be able to stay above the $50K support level. It is a psychological level that a lot of people still watch. Unfortunately, the dip below the $50K support level seems to have some people worried. The current Bitcoin price momentum isn’t looking all that great right now. Bitcoin price fails to build $50K support as traders eye lower levels next
The price of Bitcoin has been falling sharply after it failed to build on the $50K support level. Bitcoin is down almost 4% today, trading at $42.75. The cryptocurrency’s value has dropped to the lowest level since April 25, and it has now lost over $10K from its 2019 peak at $50.04.
Bitcoin (BTC) appeared on the 13th. May dropped back below $50,000 as Elon Musk’s criticism continues to reverberate.
1-hour candlestick chart of BTC/USD (Bitstamp). Source: View of the shop
Traders wait for buy signals
Data from Cointelegraph Markets Pro and Tradingview confirmed that BTC/USD failed to establish $50,000 as support after initially falling to $45,650.
Musk, speaking as Tesla’s CEO, said the company would no longer accept payments in BTC due to environmental concerns.
After a slow three-hour plunge, BTC/USD then recovered to around $52,000 before losing momentum again. At the time of writing, the pair was trading around $49,500 in a highly volatile environment.
However, as Cointelegraph previously reported, bitcoin’s price movements did not change beyond the short-term period due to Musk and traders’ reaction.
So, for popular trader Scott Melker, it’s time to apply the established method to determine the likelihood of hitting a low price.
For this he used the relative length index (RSI), a classic indicator of overbought or oversold areas.
I write about this every time the 4 hour RSI is oversold, and it usually triggers. The overbought bear diva is the top, he shared with his followers on Twitter.
Now I want to see a lower price and a higher ROI. It could be a candle or a few days, but that’s the signal I need.
On Thursday, bitcoin had already reversed its downtrend when it hit the 21-week exponential moving average (21EMA). This line in the sand held up during the bull market last year and in 2017, and is seen as strong support during periods when bullish momentum undergoes a short-term pullback.
This month, the 21EMA was still climbing strongly, so BTC/USD needs to set higher highs and higher lows again on the weekly timeframe to maintain its utility.
Earlier, the warning mentioned $40,000 as a possible minimum if $50,000 did not hold up.
Bitcoin bears are struggling against a significant moving average
Meanwhile, as investors rush to buy the business, attention turns to issues where large aggregations of bids from whale buyers could also help drive the price up.
Bitcoin paid no attention to Whale’s positions north of $50,000, despite heavy buying up to $58,000.
However, according to Whalemap, a watchdog organization, the number of coins sold at a loss indicates that there was panic in the market even before the Musk episode.
These moments are historically good buying opportunities because they indicate panic in the market, according to part of Tuesday’s tweet.
Strength of long and short positions in BTC/USD (Binance). Source: Material displays
A look at the buy and sell order patterns on Binance also showed that retail investors are now protecting $45,000, with $55,000 and higher as strong resistance.
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