Bitcoin (BTC) price pivots off $50k once again to retest weekly lows

BTC price touched lows of $44,000 after yet another rejection above $50k

Bitcoin price has traded at lows of $44,150 after it dropped nearly 10% over the past 24 hours. The negative price action follows the bulls’ failure to establish momentum above $50,000 — despite rallying as high as $51,900.

At the moment, BTC/USD is changing hands around $45,300 but remains vulnerable to a fresh decline if the bearish outlook strengthens. If the price turns lower on strong selling, it could retest the $42,000 support zone.

On the contrary, a strong rebound over the weekend could mean a monthly close near or above the now critical $50k price level.

Bitcoin price outlook

Bitcoin is signaling further bearish moves in the short term given that the price has now broken below the previous range and is well below the 100 (hourly) simple moving average. This follows a bearish retest, where BTC/USD broke to lows of $45k before spiking back up to retest resistance at $52,100.

However, after the breakout, the price came straight back down, breaking below three key price levels: the SMA50 at $49,233, the previous anchor at $48,800, and major support at $45,500.

Bitcoin is currently trying to consolidate above $45,500 after breaking back into the $45.5-$48.8k range. The technical picture suggests bears are likely not done yet, and another sell-off near the top of the range or weekly highs of $52k remains on the cards.

BTC hourly chart

The hourly MACD remains below the signal line, although a hidden bullish divergence suggests increased buying is incoming.

If more buy orders allow bulls to push higher, initial resistance at $46,800 will likely stall the upside before further buying pushes BTC/USD to $48,147, the 0.5 Fib retracement level of downswing from $52,079 high to $46,228 low.

Above the barrier, buyers could target the 0.618 Fib retracement level ($49,087), the SMA50 ($49,156) and the SMA100 ($50,033). A higher close on the daily log could see bulls look to retest the $52,000 level.

On the downside, a fresh decline below the horizontal support line at $45,500 could see bears retarget $44,100. Increased selling could then see BTC price plunge towards support at $42,000.

According to technical analyst Michael van de Poppe, although Bitcoin can still retest highs of $52-54k, the chances of further downward correction are high. He said this prior to BTC retesting the $44k level:

“Bitcoin doesn’t look too great for a bull continuation coming period. Still, retest at $54,000-55,000 could happen, but I’m cautious when we get there. If we lose $47,000, then I’m looking at $42,000-44,000 and $37,000-38,500 next. That should be the low.”