Bitcoin Price Analysis: BTC Breaks Below $50,000
Daily Bitcoin BTC Price Forecast
- Bitcoin price has several strong resistance barriers upfront.
- The MACD shows increasing bearish market momentum.
- The 20-day and 50-day SMAs have flipped from support to resistance.
- The MACD shows decreasing bullish market momentum.
- The relative strength index (RSI) shows that BTC could drop some more before it becomes oversold.
After reaching almost $59,000 on May 8, the Bitcoin price has been on a slump since then and dropped to $49,400 over the next four days, losing almost $9,500 and dropping below the $50,000 psychological level. Let’s take a closer look.
The Bitcoin Price Sentiment Is Negative
Over the last two days, the Bitcoin price has been hovering horizontally below the $50,000 psychological level. BTC has flashed the following three bearish signals:
Image: BTC/USD daily
Bitcoin price has a strong support line at $49,000. As per the IOMAP, previously - at this level - ~870,000 addresses had purchased more than 465,000 BTC coins.
Crypto Community Responds to Elon Musk’s Announcement
Elon Musk, the CEO of Tesla, recently announced that the company has decided to remove Bitcoin as a payment option for its vehicles and services. The shocking announcement brought prices down and attracted the world’s attention.
The ever-vocal crypto community was quick to respond to the news. While some people canceled their Tesla vehicle orders, others were breaching bitcoin’s clean energy mining. Musk cited the asset’s high energy consumption as the reason for the decision. Bitcoin lost more than $12,000 in a day to a two-month low as soon as the news broke out.
Michael Saylor, the CEO of MicroStrategy and a popular BTC proponent, was among the first to respond. He said:
Ironic because no incremental energy is used in a bitcoin transaction. The energy is used to secure the crypto-asset network, and the net impact on fossil fuel consumption over time will be negative, all things considered.
Crypto expert Anthony Pompliano said that “this energy story has been debunked over and over again” and added that “75% of miners use renewable energy.” A recent VanEck report supported Pomp’s assertion.
Binance’s CEO, Changpeng Zhao, commented:
Elon probably did not research how much energy is required to run other (non-crypto) currencies that Tesla accepts.
Mike Novogratz, the CEO of Galaxy Digital, opined that Musk’s actions could be favorable for Bitcoin in the long run as he “is using his considerable influence to push BTC mining towards a greener future.” Popular YouTuber Chris Dunn shared screenshots of canceling a Tesla Cybertruck order. He also left feedback for the company.
Short Term Risk To Bitcoin Price
CryptoQuant shared this chart to show that whales are depositing BTC to the exchanges.
"If you're a long-term $BTC investor, don't worry. Your portfolio is the same as institutional investors in the States. If you're a derivative trader, be careful in the short term. (Relatively speaking) whales are depositing $BTC to exchanges."
However, Glassnode also noted that investors have taken advantage of this dip to accumulate coins.
"#Bitcoin supply held by Long Term Holders has returned to accumulation mode Whilst it looks similar to the 2017 peak, HODLers today actually hold +8% more of the circulating supply in dormant wallets. Dormant supply increases, even as price dips."
Plus, longterm Bitcoin price outlook is still bullish. It seems like the longs are back paying the shorts again in the derivatives market.
Bitcoin Price Is Expected To Reach These Levels
Expect the Bitcoin price to keep trending horizontally below the $50,000 psychological level. On the upside, there are several strong resistance barriers.