Crypto Bulls Are Disappointed As Bitcoin’s Upside Move Is Stopped Below $50K

Bitcoin Faced Strong Resistance At The 20 EMA

Bitcoin failed to settle above the 20 EMA at $49,400 and pulled back towards the $48,000 level, which is a major disappointment for crypto bulls.

The leading cryptocurrencies, Bitcoin and Ethereum, have recently started to move higher together with other riskier assets as traders shrugged off worries about the spread of Omicron.

However, it looks that the crypto market is not yet ready for a big move. Yesterday, S&P 500 enjoyed strong support and moved closer to all-time high levels but leading cryptocurrencies faced resistance and pulled back.

I’d also note that Bitcoin Dominance, which measures the market capitalization of Bitcoin as a percentage of total crypto market capitalization, is close to yearly lows, which indicates that altcoins are gaining market share. In case Bitcoin Dominance settles below the 40% level, it may move towards 2018 lows near 36% which will be bearish for Bitcoin.

The 20 EMA Remains The Key Level

Bitcoin has recently made an attempt to settle above the 20 EMA at $49,400 but failed to develop sufficient upside momentum and pulled back.

Currently, Bitcoin is trying to get below the nearest support level at $48,000. In case this attempt is successful, Bitcoin will move towards the next support at $47,000. Importantly, such a move would push Bitcoin back into the previous downside channel, which would be a major victory for the bears.

On the upside, Bitcoin needs to get above the 20 EMA at $49,400. Bitcoin may also face some resistance near the psychologically important $50,000 level, but it should face little resistance between $50,000 and $52,000 so such a move could be very fast.

Taking a look at H1 chart, we can see that Bitcoin is dangerously close to the previous downside channel. RSI is in the moderate territory, so there is enough room to gain additional downside momentum in case Bitcoin manages to settle below $48,000.

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