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Bitcoin Slides Below Key Support

Published 12/28/2021, 08:37 AM
Updated 07/09/2023, 06:31 AM

Following a four-day consolidation, the Bitcoin price fell below the $50,000 critical level on Tuesday as the selling pressure reemerged after a failed attempt to overcome the $52,000 level for the first time in more than three weeks.

The BTC/USD pair has settled around $49,000, just above the 20-DMA, struggling to see a more robust recovery. Despite the recent sell-off, nothing is worrying at this point, at least as long as the Bitcoin price stays above the $48,000 figure and the 200-DMA, currently at $47,600.

Technically, the lack of decisive momentum around the $52,000 mentioned barrier caused the Bitcoin price to get back below $50,000. The daily RSI has reversed lower in the neutral territory, suggesting there is room for further losses in the near term. In part, the downside pressure in the cryptocurrency market was also triggered by fresh comments from billionaire Ray Dalio.

The founder of Bridgewater Associates said Bitcoin wouldn’t reach $1 million. He said,

“A limitation on its price in relation to other things like it.”

He also emphasized that he does not think Bitcoin will be worth more than gold. In contrast, Microstrategy (NASDAQ:MSTR) CEO Michael Saylor expects the coin to reach $600,000 and then $6 million in the future. 

Other Cryptos Under Selling Pressure

Most other digital currencies also witnessed a moderate sell-off.

The second-largest coin Ethereum was also in the red and was last seen changing hands around $3,900, down 2.9% on the day. Dogecoin prices slipped more than 3% to $0.18.

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The downside pressure in the cryptocurrency market will likely persist in the coming few days, with BTC finishing the second bearish month in a row. Still, the coin is up more than 75% this year so far.

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