- Bitcoin encountered rejection at the resistance area near $52,400.
- The coin broker down from a near-term ascending channel.
- Bitcoin follows a near-term descending resistance mark.
Bitcoin (BTC) wavers at the $45,800 – $47,000 Fibonacci support level. The largest crypto might require a higher low within this range for a relief rally resumption.
Bitcoin had been plummeting since 7 December after touching the high at $51,936. The peak was near 0.382 Fibonacci retracement resistance at $52,400. Moreover, it authorized the earlier ascending support level that Bitcoin breached on 4 December as a resistance. Apart from the rejection, BTC’s daily technical indicators remain bearish.
The Moving Average Convergence Divergence falls while it is negative. That indicates the long-term moving average moves faster than the near-term MA. Though the histogram formed a high-pressure bar on 6 December, it resumed its fall since then.
The Relative Strength Index, a momentum indicator, declined beneath the 50-mark. Keep in mind readings under 50 suggests bearishness. With that, Bitcoin’s daily chart presents a bearish picture. Moreover, the 9 December bearish engulfing candle accentuated the outlook. A bearish engulfing candle is a bearish type where a massive bearish candle negates the asset’s overall movements over the past day.
Near-Term Bitcoin Breakdown
BTC’s hourly chart indicates that Bitcoin broke an ascending channel on 9 December. The world’s dominant digital coin continued to plunge until touching $47,320, a level beyond 0.5 Fibonacci retracement support at $47,000.
Also, Bitcoin has traded under a descending resistance since 7 December, the recent rejection coming on 9 December. The crypto has to break out to the upside for a near-term bullish trend.
BTC Future Movement
The likely wave count shows that the brief rally came from sub-wave B of a long-term wave2. That has the potential to take Bitcoin high to $58,800 resistance, the 0.618 Fibonacci retracement resistance.
Meanwhile, losing the $50,000 psychological mark to hit 448,326 shows bear dominance. Buyers need to rescue the leading digital coin to avoid further plummets towards $40,596, the following support barrier.
What are your thoughts on Bitcoin’s bearish outlook now? Will the crypto reverse the situation? When? You can comment below.