- Bitcoin struggles to secure support at $54,000 as a drop to $50,000 becomes apparent.
- The short-term analysis shows that the least resistance path is downwards.
- Support above $54,000 will shift the bulls’ attention toward $60,000.
Bitcoin lifted to new all-time highs above $60,000 over the weekend. The real break saw the flagship cryptocurrency hit a barrier at $61,775, but the downside was protected at around $60,000. However, a massive correction was posted on Monday, throwing BTC out of balance.
The bellwether cryptocurrency tumbled under $60,000 amid the volatility caused by India’s proposed bill to ban cryptocurrencies. Massive sell orders were triggered with Bitcoin extending the bearish leg towards $50,000.
At the time of writing, BTC is doddering slightly above $54,000, but the gravitational force is yet to come down. The upside overhead pressure seems to be rising under the 50 Simple Moving Average (SMA) on the 4-hour chart.
On the downside, tentative support is expected at the 100 SMA, currently holding the ground at $51,246. The 200 SMA is also in line to prevent further losses; however, primary support has been highlighted at $49,500.
The Moving Average Convergence Divergence (MACD) emphasizes the downtrend, suggesting that it is far from over. As the MACD drops into the negative region, more declines are expected to come into the picture. Besides, the MACD line (blue) widens the gap under the signal line, cementing the bears’ influence over the price.
BTC/USD 4-hour chart
It is worth mentioning that the downward move to $50,000 may fail to materialize if support at $54,000 holds firmly. Some semblance of stability will get the bulls from playing defense and allow them to launch assault missions toward $60,000.
Bitcoin intraday levels
Spot rate: $54,250
Relative change: -1,400
Percentage change: -2.5%