BTC analysis shows worrying signs as Bitcoin continues to struggle after getting rejected retesting the critical 50-days moving average (MA) line yesterday. Unless BTC closes above $56,900, which now looks unlikely, we are going to witness the first full candle body or trading day below the important level for the first time since October 7, 2020.
Quick recap: During the steep price fall on Sunday, bitcoin had penetrated beneath the 50-days MA to reach as low as $51,400, where it found support level at a .618 Fib Retracement.
From there, bitcoin managed to rebound higher as it went on to close the daily candle on Sunday above the 50-days MA. Unfortunately, as the week progressed, weakness got back as BTC dropped beneath the 50-days MA and struggled to surge. Yesterday, it was rejected from the resistance level, which caused it to head lower and fall beneath the major support at $55,000.
Today, bitcoin analysis shows that it continued to decline as it reached as low as $52,600. There, it found support at an ascending trend line that dates back to the start of February.
The breakdown beneath the 50-days MA is quite significant as the last time this occurred was back in September 2020. It took bitcoin a total of 35 days to break back above the 50-days MA during that time period.
Looking at the near-term BTC analysis, bitcoin was trading inside a symmetrical triangle pattern since Sunday’s price collapse. Today, bitcoin broke to the downside, which resulted in the massive drop to $52.5k (today’s low as of writing these article). The near-term bearishness confirmed as the triangle was tested, as resistance from below, and got rejected.
BTC Tecnical Analysis: Support and Resistance Levels to Watch
Key Support Levels: $53,300, $52,225, $51,440, $51,000, $50,750.
Key Resistance Levels: $55,000, $55,400, $56,820, $58,355, $60,000.
Looking ahead, the first support level is at $53,300. This is followed by $52,225 (downside 1.272 Fib Extension), $51,440 (.618 Fib), and $51,000 (this month’s low recorded on Sunday). The latter should serve as a significant support level, together with the $50,750 (downside 1.618 Fib Extension) and $50,000.
On the other side, the first resistance lies at $55,000. This is followed by $55,400, $56,820 (50-days MA), $58,355 (20-days MA), and $60,000.
The daily RSI is well within the bearish territory as the selling momentum rose today, causing the RSI to make a new low for the year. This shows that the bearish momentum is now the highest since September 2020.
JPMorgan Sounds Urgent Alarm On Bitcoin Price ‘Momentum’ After $300 Billion Bitcoin And Crypto Sell-Off
JPMorgan analysts have warned that if the bitcoin price doesn’t regain ground above $60K soon, bitcoin’s momentum signals will collapse.
“Over the past few days bitcoin futures markets experienced a steep liquidation in a similar fashion to the middle of last February, middle of last January or the end of last November,” JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a note to clients. “Momentum signals will naturally decay from here for several months, given their still elevated level.”
Over the weekend, around $10 billion in bitcoin and crypto long positions—bets the bitcoin price will increase—were liquidated as fear gripped the bitcoin market, sending the bitcoin price down over 10% in a matter of hours. The combined bitcoin and cryptocurrency market lost some $300 billion from its market cap of over $2 trillion.