Bitcoin suffers a rejection within a whisker of $50,000 as the bullish weekend session turns bearish.
BTC may freefall toward $43,000 if the 50 SMA support fails to hold.
The flagship cryptocurrency will resume the uptrend if the channel’s middle boundary support is reclaimed.
Bitcoin nearly hit $50,000 for the first time in history during the weekend session. However, the bullish leg was rejected at $49,625, calling out to sellers to come and get their shot. A correction from the new all-time high is underway at the time of writing, which could see the bellwether cryptocurrency tumble to $43,000.
Since February started, BTC has been trading within the confines of an ascending parallel channel. The upper boundary has continued to limit price movement, while the lower edge has ensured that Bitcoin’s downside has been protected.
Meanwhile, the record highs’ rejection has lost the channel’s middle-level support, which adds credence to the bearish outlook. BTC is trading at $47,175 while seeking immediate support at the 50 Simple Moving Average.
Similarly, the Moving Average Convergence Divergence (MACD) trend shows that sellers have more influence. The indicators’ retreat from 2,515 signaled that the uptrend was getting exhausted. Additionally, the MACD line (blue) cross under the signal line confirmed the bearish outlook, implying that it was time to sell the top, at least for now.
BTC/USD 4-hour chart
If the 50 SMA support on the 4-hour chart fails to hold, the pioneer cryptocurrency may drop further in search of another support. The ascending channel’s lower edge will play a key role in absorbing the selling pressure and perhaps restarting the uptrend.
Closing the day above the 50 SMA will also be a bullish signal, while trading above the middle boundary could boost Bitcoin above $50,000.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org