Bitcoin
Will Bitcoin fall to $50K? THIS signals more losses
- Bitcoin has a bullish HTF outlook, but the current pullback could be deeper.
- ETF inflows temporarily boosted bullish sentiment.
Bitcoin [BTC] turned bearish on the lower term price charts after reaching $65.5K at the start of the week on Monday, May 6th.
The $63,300 support level gave way to selling pressure and moved to resistance on May 7th.
Reports of a decline in accumulation of BTC may suffer further devaluation due to lack of demand. Still the panorama remained bearish for Bitcoin despite promising streams on Monday.
$62,100 level falters as downtrend gains strength
Source: BTC/USDT on TradingView
The range where BTC was previously trading had its low of $59.7K. Price action on May 1 saw this level breached, and the $65K region was retested as resistance.
This meant that the market structure was bearish.
The RSI on the daily chart also fell below neutral 50 to indicate bearish momentum. On the other hand, OBV bounced above the local resistance level and continued to defend it at press time.
However, Bitcoin was likely to fall to the lows of $55K or even lower in the coming weeks.
Over the past two months, selling pressure has been intense and liquidity in the south could attract lower prices.
Why Bitcoin Can’t Instantly Reverse Bullishly
Source: Hyblock
The technical outlook highlighted a downtrend. After a strong trend, prices need time to consolidate.
By breaking below the minimum range of US$59.7 thousand, BTC suggested that the consolidation phase had not yet arrived and that the downtrend persisted.
To read Bitcoins [BTC] Price prediction 2024-25
The $56K and $51.5K liquidity pockets are Bitcoin’s next magnetic zones. To the north, the $68,500 to $70,000 region was an interesting place for a bearish reversal.
Given the technical factors, a southerly move seemed more likely.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents solely the opinion of the writer.