Bitcoin Moves Below $47,000 Amid Crypto Sell-Off

Bitcoin Is Under Strong Pressure

Bitcoin gained downside momentum after it failed to settle above the psychologically important resistance level at $50,000. Bitcoin has already managed to get below the support level at $48,000 and is trying to settle below $47,000.

Not surprisingly, other cryptocurrencies also found themselves under pressure. Ethereum is currently testing the support level at $3,125. Dogecoin is trying to settle below recent lows at $0.2770, while XRP is moving towards its 20 EMA at $1.09.

There is no rush to safety in other markets, and it looks that current problems of crypto markets were caused by Bitcoin’s failure to settle above the important resistance level.

Technical Analysis

Bitcoin faced strong resistance near $50,000 and failed to develop sufficient upside momentum to move above this level. As a result, Bitcoin slipped below the support at $48,000 and continues to move lower. RSI is in the moderate territory, and there is plenty of room to gain downside momentum in case the right catalysts emerge.

The nearest support level for Bitcoin is located near the 20 EMA at $46,000. In case Bitcoin manages to settle below the 20 EMA, it will gain additional downside momentum and head towards the next support level at $44,000. This support level has already been tested many times in August and proved its strength.

A move below the support at $44,000 will be a worrisome development for the bulls as it will indicate that Bitcoin’s pullback may be strong. In this case, Bitcoin will move towards the 50 EMA near $42,600. A successful test of the support at the 50 EMA will open the way to the test of the next support level at $41,300.

On the upside, the previous support level at $48,000 will serve as the first resistance level for Bitcoin. If Bitcoin manages to settle above this level, it will head towards the key resistance level at $50,000. A move above the resistance at $50,000 will push Bitcoin towards the resistance at $51,500.

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