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Bitcoin Slips Back Below $50K Amid Crypto Market Pullback

By:
Vladimir Zernov
Published: Dec 28, 2021, 08:22 GMT+00:00

Bitcoin retreated below the key $50k level and moved closer to the $49k level.

Bitcoin 1

In this article:

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 december 28 2021

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.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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