Bitcoin bulls lick their wounds below $50,000, currently around $48,400 while trying to tame the downside break of a short-term key support line, now resistance, during early Wednesday.
In doing so, the quote tries to justify its bounce-off 21-day SMA but the downward sloping RSI line and receding strength of the MACD signals suggest further challenges for the crypto optimists.
As a result, a clear break below the 21-day SMA level of $47,290 will direct short-term BTC/USD sellers toward 50-day SMA, currently around $40,250. However, any further weakness will be tamed by a 10-week-old support line, at $35,900.
In a case where the crypto major fails to bounce off the key support line, odds of its drop to the monthly low near $32,000 can’t be ruled out.
Alternatively, corrective pullback beyond the previous support line, at $49,700 now, will have to cross the $50,000 hurdle to recall the BTC/USD buyers.
Following that the latest high of $58,355 can offer an intermediate halt ahead of directing the run-up to the $60,000 round-figure.
To sum up, Bitcoin’s latest pullback is likely to extend but the bulls aren’t out of the woods.
Trend: Further weakness expected