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Bitcoin Tops At $52K, What Could Trigger A Sharp Move To $47K

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Bitcoin failed to clear the $52,000 resistance zone against the US Dollar. BTC is started a major decline and traded below the $50,000 support.

  • Bitcoin made two attempts to clear the $51,800-$52,000 resistance zone but failed.
  • The price is trading below $50,000 and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $51,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is declining and could even dive below the $49,500 support zone in the near term.

Bitcoin Price Forms Bearish Pattern

Bitcoin price made another attempt to clear the $51,800 resistance zone. BTC spiked towards the $52,000 zone, where the bears took a stand. It seems like there is a double top pattern forming near $52,000.

A high was formed near $52,111 and the price started a fresh decline. There was a break below the $51,200 and $50,500 support levels. There was also a break below a key bullish trend line with support near $51,200 on the hourly chart of the BTC/USD pair.

The pair traded below the 50% Fib retracement level of the upward move from the $49,477 swing low to $52,111 high. Bitcoin is now trading below $50,000 and the 100 hourly simple moving average.

It is also trading below the 76.4% Fib retracement level of the upward move from the $49,477 swing low to $52,111 high. An immediate support is near the $49,500 zone. The first major support is near $49,000.

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Source: BTCUSD on TradingView.com

A downside break below the $49,000 level could push the price towards the $48,800 support. Any more losses may possibly push the price towards the $47,500 support zone.

Recovery In BTC?

If bitcoin manages to stay above the $49,500 support zone, it could start a decent increase. An immediate resistance on the upside is near the $50,000 level.

The next key resistance could be $50,800 and the 100 hourly SMA. A clear move above the $50,800 resistance zone could start a fresh increase. The next major stop for the bulls may possibly be near the $51,800 level.

Technical indicators:

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Hourly MACD – The MACD is slowly gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.

Major Support Levels – $49,500, followed by $47,500.

Major Resistance Levels – $50,000, $50,800 and $51,800.

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