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Bitcoin Price Retreats from $50K! More Downside Imminent for BTC Price

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Bitcoin price broke above $50000 for the first time since May on Monday. However, its recovery from a months-long fall stalled. 

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After a brief consolidation of around $48K. Yesterday, BTC rallied as high as $50321. Recording an 82% recovery since hitting a yearly low of $27700. However, the token failed to keep up the bull and is currently on a downtrend. 

At the time of writing, BTC is trading at $49098 down by 1.5% in the last 24 hours. More downside is expected from here in the short term. 

A Short term pullback Imminent For Bitcoin Price

Crypto analysts from Decentrader in a recent tweet indicated the possibility of more downside for BTC. The tweet points out that there was a lack of volume during the surge. Hence, a break above $52K is not possible.

However, as BTC is set to retest support levels, $48K is the immediate one to hold. In case of a slump $44K and $41K will come to play. 

Crypto ED NL, a pseudonymous cryptocurrency analyst, has also mentioned the possibility of a short-term decline, predicting that the price will drop below $50,000.

Also Read : Bitcoin Price Could Still Go 3X Beyond $60,000 In This Bull Run!

He selected the area between $49,100 and $49,300 as a promising zone for traders to begin long positions.

On Friday, almost 25% of bitcoin options open interest is expected to expire. The $50,000 strike price, which is also a critical technical resistance level, has the highest concentration of open interest. 

Hence, analysts anticipate a period of consolidation leading up to the option expiration date on Friday.

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Haripriya Sureban

A writer and a Crypto fanatic exploring the DeFi Space. Staying abreast on all the crypto trends and trivia is my forte. For the rest I nerd out on movies and series.

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