Bitcoin Slips Back Below $50K Amid Crypto Market Pullback
Bitcoin Lost Momentum, Other Leading Coins Also Moved Lower
Bitcoin failed to settle above the 50 EMA near the $52,000 level and pulled back below the psychologically important $50,000 level. This move had a negative impact on crypto market mood, and all leading cryptocurrencies have found themselves under pressure.
Ethereum declined below the support level at $4,000 and is trying to settle below the next support near the $3,900 level. Solana failed to settle above the $200 level and tested the support at the 20 EMA at $187.50. Binance Coin, Cardano, XRP, Terra, Avalanche are all moving lower as traders reduce their positions after Bitcoin’s move back below the $50,000 level.
The current situation is especially disappointing for crypto bulls as there is no global rush out of riskier assets. S&P 500 futures are trading near all-time high levels, gold remains stuck in the $1800 – $1815 range while U.S. dollar is mostly flat against a broad basket of currencies. This means that the current pullback is limited to the crypto space.
50 EMA Is A Strong Obstacle On The Way Up For Bitcoin
Bitcoin faced strong resistance near the 50 EMA and declined below the 20 EMA which is located near the psychologically important $50,000 level. This is a major disappointment for the bulls who hoped that Bitcoin will be able to gain strong upside momentum after it managed to get above the $50,000 level.
If Bitcoin settles below the 20 EMA, it will move towards the next support level at $48,000. A move below this level will push Bitcoin towards the support at $47,000. In case Bitcoin declines below the support at $47,000, it will continue its pullback ana head towards the support at $46,200. A successful test of this level will push Bitcoin towards the recent lows near $45,500.
On the upside, Bitcoin needs to settle back above $50,000 to have a chance to develop upside momentum in the near term. The next resistnace level is located near the 50 EMA at $52,000. The recent trading action indicated that it is a very important resistance level for Bitcoin, so a move above this level will provide Bitcoin with an opportunity to gain strong momentum and get to the test of the next resistance at $53,500. A successful test of this level will push Bitcoin towards the resistance at $55,500.