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