Bullish Correction in Play!
The BTC/USD crypto pair managed to stop its early-day crash moves and took a new position around above the $50,000 level. The BTC/USD pair dropped almost 13% of its value over the last 24 hours after the tweet from Elon Musk highlighting Tesla's suspension of bitcoin payment acceptance due to sky-high energy needs.
Elon Musk's crypto-supporting comments have been seen as one of crypto's biggest advocates over the last few months, which in turn, Bitcoin (BTC) has performed "very well" over the previous few months. Although, the gains were short-lived as Musk's latest comments sent bitcoin prices into a tailspin, quickly sparking a steep selloff. Conversely, the upbeat market mood and bearish U.S. dollar were considered one of the key factors that help the BTC/USD pair limit its deeper losses. The BTC/USD crypto pair is trading at 50,334.8 and consolidating in the range between 48,874.0 - 50,811.2.
The BTC/USD pair has been bearing intense pressure from sellers this week as multiple news triggers collectively impacted and pressed to make it bearish. A recent decline in the global stocks or the recent downbeat Musk's comments, everything weighs on the BTC value. As per the keyword, Elon Musk said that Tesla would suspend customer purchases of cars with bitcoin (BTC), pinning the decision on the network's power consumption as the catalyst.
Another reason behind the declining prices of Bitcoin could be the latest statement from the Chairman of the investment firm Bain Capital. Steve Pagliuca, the Chairman of Bain Capital, said that Bitcoin was hard to be seen as a viable currency yet. He added that the stability of the primary cryptocurrency was not satisfactory, and it has a long way to go to be trusted in lots of places. These negative comments from the Chairman of an investment firm weighed on the Bitcoin prices and dragged them lower for the day.
BTC/USD Intraday Technical Levels
Pivot Point: 49823.4
BTC/USD - Technical Outlook
On Friday, the BTC/USD pair continues to feel the bearish pressure as it consolidates below the psychological resistance level of 50,000. A day before, the BTC/USD plunged dramatically, falling from 52,635 level to 44,900 level. However, the pair has recovered most of its losses already. At the moment, Bitcoin's support holds at 48,850 and 46,980 levels. While the resistance continues to hold around 52,630 level and bullish breakout, this can expose the leading crypto pair towards 53,462 levels. On the 4 hour timeframe, the 20 & 50 periods EMA are extending resistances at 53,465 areas. Considering the technical indicators, the bullish correction has started in BTC/USD pair. All the best!
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