Bitcoin Price Forecast: BTC Upside Remains Highly Vulnerable At $47,000

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Following a massive crash last week, Bitcoin extended the bearish leg below $46,000 on Monday, whereby a low was traded at $43,437 (data by Coinbase). Shortly after, a minor recovery came into the picture, allowing bulls to regain control during the Asian session on Tuesday.

Meanwhile, the flagship cryptocurrency is trading at $45,074 and appears to be struggling with resistance near $46,000. Bitcoin must hold onto the immediate support at $45,000, a move the will likely keep the uptrend to $46,000 intact. A four-hour close above $46,000 could see BTC close the gap to $47,000.

Bitcoin Price Upside Remains In Jeopardy

The four-hour chart brings into light a gradually forming descending parallel channel. The channel’s lower boundary recently played a key role, preventing declines from stretching to $42,000 and $40,000, respectively. Nonetheless, the upper trendline is a bulls’ nightmare that continues to limit movement toward $50,000.

Bitcoin’s potential recovery to $50,000 is bound to face immense resistance at the 50 Simple Moving Average (SMA), highlighted at $47,000. The 200 SMA currently holds at $47,595, and the 100 SMA near $48,000 are likely to hinder the uptrend.

BTC/USD Four-Hour Chart

BTC/USD price chart by Tradingview

Note that the recent 50 SMA crossing below the 200 SMA marked the beginning of a bearish trend for the bellwether cryptocurrency. Although this pattern is not a golden cross, many analysts see it as a bearish signal.

Realize that closing the day below the channel’s upper boundary could trigger more losses as bulls get weary. On the downside, the bulls’ ability to stay above $45,000 will determine Bitcoin’s next trend’s direction.

Bitcoin Price Bullish Outlook

The same four-hour chart shows that the Moving Average Convergence Divergence (MACD) has a minor bullish outlook, accentuated by the 12-day EMA crossing above the 26-day EMA. If the MACD closes the gap to the mean line, we can expect Bitcoin to keep moving nearer to $50,000.

Besides, the Relative Strength Index (RSI) currently draws nigh to the midline after bouncing off support at $36. If the RSI gains traction above 50, Bulls will increase their grip on price, thus validating the uptrend.

Bitcoin Intraday Levels

Spot rate: $45,177

Trend: Bullish bias

Volatility: Growing

Resistance: $46,000 and $47,000

Support: $45,000 and $42,000

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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