After the price of Bitcoin dropped below the psychological level of $50000 on December 4, the bulls lost confidence. A decline below 50000 opened up opportunities for investors to buy Bitcoins at a good price, but there was not enough trading volume to bring the price of Bitcoin back above 50000. Over the course of the week, the bulls tried several times to send the price above 50000, but each time they met resistance from bears, which led to the price return below 50000.
Today the Bitcoin price continues to decline. At the time of publication, the BTC/USD pair is trading around 48300. Bitcoin has received additional pressure from congressional hearings on regulating the blockchain industry. However, no specific decisions were made following the hearings, which caused uncertainty among traders. The new strain of COVID-19 is also alarming investors and forcing them to withdraw money from the market.
On the hourly chart, the BTC/USD pair an upward channel has begun to form. And the price moves in this channel in a downtrend. This downtrend channel is forming within a large downtrend forming on the daily chart. Thus, it is possible to predict the continuation of the downtrend.
In the current situation, the immediate support is located near the level of 48000. A break of this support will help the bears push the Bitcoin price down to 47300. A move below this level will increase selling pressure and send BTC/USD to the area of 46000.
On the other hand, if the bulls manage to push the price above $49000 and hold it, there is hope for the decline to end. However, further we will see the sideways movement of the BTC/USD pair and attempts to overcome the resistance levels of 49500 and 49900 dollars.