Bitcoin buyers' momentum gets halt at the $50k resistance level. The price of Bitcoin has seen a lot of upward movement in recent weeks. Bitcoin price moved from $30k support level to $50k resistance in 6 weeks, which made Bitcoin's total market cap reach above $900B. The last few weeks have been a wonderful time in the crypto market as almost all cryptocurrencies soar. But it seems the rally is coming to a halt as August comes to an end.
Bitcoin price hits the $50K resistance on Monday, and it has been falling ever since. Bitcoin price came back to test the $47K support as the price crashed from $50K. Price rallied as it reached the $47K demand area, but failed to go back to the $50K recent high. As seen on the chart below, a mini resistance was created at $49K as indicated by the blue horizontal line.
The price of Bitcoin is trading at $48K as of publishing time. The $49K resistance has sent the price back down for the second time and the price is waiting for buyers' reaction before extending its losses to $47K and then $44K.
Price is trading around the 50MA on the 4hour chart and the 200MA is far away, which can be used as support if the price eventually crashes.
A break below $47K will see the price go back to $44K or below. But a break above the $49K is less likely to occur at the moment as buyers will prefer to get a better discount. And with the increasing sell pressure, a crash to $44k is imminent on the largest cryptocurrency.