Bitcoin price continues to struggle below the USD 50,000 resistance, with buying activity remaining weak
Bitcoin price continues to struggle below the USD 50,000 resistance. Last month’s short-term downtrend remains in place, which could limit further gains beyond $ 50,000 to $ 60,000. BTC is down 4% in the past 24 hours and was trading at $ 48,435 at press time.
BTC / USD 4-hour chart | Source: TradingView
Bitcoin price drops below $ 50,000, support from $ 43,000 to $ 45,000
Bitcoin fell to $ 48,000 on Thursday and lost nearly 5% after hovering above $ 50,000 in the past two days. However, the trading volume of the No. 1 cryptocurrency by market capitalization on the major centralized exchanges continues to decline.
The cryptocurrency is down about 14% in the past seven days, although support at around the 200-day moving average (currently at $ 46,500) could stabilize the current pullback. BTC buying activity remains weak despite some oversold signals on the chart. This diminishes the chances of a significant uptrend in January, especially given the loss of bullish momentum on the weekly and monthly charts.
“With Bitcoin temporarily back below $ 48,000, trader sentiment has now fallen into bearish territory as people are skeptical of a price return in mid-November. Historically, negative sentiment is an early sign that the BTC- Price has bottomed out, “said Santment.
The source: mood
Much of the crypto market is also in the red. Ether fell more than 5% to around $ 4,000. The bear market came as US stocks fell and the US dollar index (DXY), which tracks the value of the greenback against major fiat currencies, rose 0.28%.
As Bitcoin news Polygon has reportedly acquired the Ethereum scaling startup Mir for $ 400 million to MATIC. With the purchases, Polygon aims to be a universal scaling product for Ethereum – a major strategic shift from an Ethereum competitor in the past.
The total capitalization of the crypto market is currently $ 2.277 trillion and the dominance of bitcoin is 40.2%.