Bitcoin drops below $ 47,000 amid crypto sell-off

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Bitcoin is under great pressure

Bitcoin gained momentum on the downside after failing to break above the psychologically significant resistance level at $ 50,000. Bitcoin has already managed to drop below the support level at $ 48,000 and is trying to move below $ 47,000.

Unsurprisingly, other cryptocurrencies also found themselves under pressure. Ethereum is currently testing the support level at $ 3,125. Dogecoin is trying to stabilize below recent lows at $ 0.2770 as XRP heads towards its 20 EMA at $ 1.09.

There is no rush to safety in other markets, and it looks like the current problems in the crypto markets have been caused by the failure of Bitcoins to settle above the important resistance level. .

Technical analysis

Bitcoin faced strong resistance near $ 50,000 and failed to develop sufficient bullish momentum to break above that level. As a result, Bitcoin has slipped below support at $ 48,000 and continues to fall. The RSI is in moderate territory, and there is plenty of room to gain ground in case the right catalysts emerge.

The closest support level for Bitcoin is near the 20 EMA at $ 46,000. In the event that Bitcoin does manage to settle below the 20 EMA, it will gain additional bearish momentum and head to the next support level at $ 44,000. This level of support has already been tested several times in August and has proven its strength.

A move below the support at $ 44,000 will be a worrying development for the bulls as it will indicate that the Bitcoin pullback may be strong. In this case, Bitcoin will head to the 50 EMA near $ 42,600. A successful test of support at 50 EMA will pave the way for testing the next level of support at $ 41,300.

On the upside, the previous support level at $ 48,000 will serve as the first level of resistance for Bitcoin. If Bitcoin does manage to move above that level, it will head towards the key resistance level at $ 50,000. A move above resistance at $ 50,000 will push Bitcoin towards resistance at $ 51,500.

The story continues

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This article originally appeared on FX Empire

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