Bitcoin continues to struggle with mounting pressure after the price failed to rise above $50000. Since August 23, we have seen a gradual decline in the price of Bitcoin. The BTC/USD pair dropped below the $49000 and $48000. Yesterday, the BTC/USD pair even formed a low around 47100. However, after that, the pair tried to recover and even climbed above $49000. But this time the pair failed to pass the resistance level of 49300 dollars and began a new decline. In just 6 hours, the price of Bitcoin dropped by almost $3000. At the time of publication, the BTC/USD pair is trading around 46840.
On the daily chart, the BTC/USD pair is still trading above the uptrend line, which provides support around 46250 dollars. At the same time, we see that a rising wedge is forming, which indicates the beginning of a possible correction if the price cannot rise above $48000. In this case, we can see a bearish correction to the area of 40000.
On the hourly chart, the BTC/USD pair continues to trade in the descending channel, despite yesterday’s attempt to break it up. The channel limits the movement of the pair to the levels of 46350 and 48200.
The BTC/USD pair dropped below the 100-hour moving average. If the bearish movement continues, we expect the support level of 46750 to provide enough support for the pair to begin a recovery. If the pair drops below this level, then the next support is at 45900.
If the recovery begins, the BTC/USD pair will need to overcome the nearest resistance level around 47260. Further, the pair will meet resistance around 48400 dollars.