Why BTC/USD Trades Below $50,000
Bitcoin Price Prediction – May 13
According to the daily chart, BTC/USD bulls are making a come-back after the two heavily bearish days.
BTC/USD Long-term Trend: Ranging (Daily Chart)
Key levels:
Resistance Levels: $55,000, $57,000, $59,000
Support Levels: $42,000, $40,000, $38,000
At the time of writing, BTC/USD is teetering at $50,071. There have been instances when BTC has exchanged hands above $52,000 sustaining the bullish price action is an uphill task. Moreover, the path of least resistance is still downwards as the daily chart shows that the king coin remains below the 9-day and 21-day moving averages.
Bitcoin Price Prediction: Would Bitcoin Go up or Down?
If pennant support gives way on the daily chart, even $50,000 may not be held as support. Therefore, after a pit stop at the support highlighted by the lower bound of the channel, Bitcoin price is likely to fall to $45,000. According to the technical indicator Relative Strength Index (14), BTC/USD is not performed with downward movements. This means there is still room for the bears to explore.
On the downside, recovery might not be easy as the support needs to be sorted above the $53,000 level. Therefore, any bullish movement above the 9-day and 21-day moving averages is likely to locate the resistance levels at $42,000, $40,000, and $38,000. In other words, if the market falls more sharply, the critical supports will likely be at $42,000, $40,000, and $38,000 when the RSI (14) is below 40-level.
BTC/USD Medium – Term Trend: Bearish (4H Chart)
Checking the 4-hour chart for the coin, BTC/USD is trending in a downward channel formation. During the European session today, the Bitcoin (BTC) is seen trading at the upside touching the daily high of $52,500 before dropping to where it is currently changing hands at $50,230. On the downside, traders can only be sure of one healthy support at $48,000. Further support could be located around $47,000 and below.
However, the technical indicator Relative Strength Index (14) is recovering from the oversold region, now moving above the 30-level. However, the Bitcoin price is rising towards the 9-day MA; further bullish movements could push the price above this barrier to reach the potential resistance at $53,000 and above.
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