After rebounding from the recent Tesla-induced crash on May 12, Bitcoin price has remained relatively stable, trading sideways. The lead crypto BTC is consolidating above a fresh one-week low of $46,000, following a 15% decline on Wednesday that generated an initial reversal signal on the formation of a large bearish candle under the moving average (MA 50). Following the sell-off, BTC’s price returns higher with a surprise but the recovery stays fragile beneath the $53,000 psychological zone. Buyers regained traction just when price re-enters bullish market zone as BTC/USD trades higher. At the time of this post, the overall outlook for the pair stays in a range at $50,300 having reached an intraday high of $51,569 on Friday. Bitcoin retains its no. 1 position on Coinmarket cap with a market cap of $942 billion and $58.35 billion in trade volume over the past 24 hours. As traders digest the news from Tesla’s announcement on Wednesday, that it will no longer accept Bitcoin as payment causing a price drop, Bitcoin (BTC) ignores Elon Musk and is rising from oversold levels. Demand has continued to increase, providing a boost to cryptocurrency’s adoption.
Key Levels
Resistance Levels: $60,000, $57,000, $53,000
Support Levels: $50,000, $47,000, $43,000
BTC/USD Daily ChartFollowing reports that Tesla will no longer support Bitcoin, the BTC/USD pair plummeted. It fell to $46,000, its lowest point since March 1. It then returned to its current level around $50,300. The pair has slipped below the moving average (MA 50) for the 3rd time since mid-April on the daily chart. Also, the relative strength index (RSI) has climbed marginally back to the oversold level of 40.
As a result, buyers rush to buy the falls, and the pair is expected to resume its upward trend. If the price drop below $46,000, the bullish claim would be invalidated. Fresh recovery has so far been capped by a $52,000 round figure, with a daily close above here to signal that bulls are gaining traction, however, the downside is expected to remain at risk as long as the price holds below key barriers at $53,000 psychological zone.
BTC/USD 4-Hour ChartIn the 4-hour chart’s perspective, after a recent price drop towards the $46,000 support range, BTC is attempting to rebound higher on the cryptocurrency market on Friday. From a technical standpoint, the $51,300 level is critical because it is the gateway into the price channel pattern. If the price does not stay below this amount, a technical recovery towards the $55,400 resistance area is possible.
Although Bitcoin remains in consolidations after its all-time highs of $64,899 on Apr.14 which suggests the short-term trend is weakening. The BTC/USD pair remains bullish if it is trading above $53,000; the main resistance thresholds are the moving average (MA 50) at $54,500 and $57,000 levels. Sellers can test the $50,000 and $46,000 levels if the BTC/USD pair trades below $53,000.
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