Bitcoin Nosedives $10K, Here’s Why Recovery Could Face Hurdles

Bitcoin price declined over $10,000 against the US Dollar after Elion Musk’s tweet. BTC is now correcting losses, but the previous support near $52,000 could act as a hurdle.

Bitcoin started a major decline from well above $55,000 and it even traded close to $45,000
The price is now trading well below $55,000 and the 100 hourly simple moving average.
There was a break below a key rising channel with support near $57,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is correcting losses, but the bulls might struggle near $52,000 and $53,000.

Bitcoin Price Dives 20%
Bitcoin failed to clear the $58,500 resistance and reacted to the downside. BTC’s decline was got pace after Elion Musk’s tweet about bitcoin mining and not accepting it as payment.
It sparked a strong bearish move below the $52,000 and $50,000 support levels. There was a break below a key rising channel with support near $57,000 on the hourly chart of the BTC/USD pair. The pair even dived towards the $45,000 level on Kraken. It is now trading well below $55,000 and the 100 hourly simple moving average.
A low is formed near $45,000 and the price is now recovering higher. It broke the $47,000 and $48,500 resistance levels. Besides, there was a break above the 23.6% Fib retracement level of the recent decline from the $58,000 swing high to $45,000 swing low.

Source: BTCUSD on TradingView.com
An immediate resistance on the upside is near the $51,500 level. It is near the 50% Fib retracement level of the recent decline from the $58,000 swing high to $45,000 swing low. The main resistance is now forming near the $53,000 zone (the previous support). A close above $52,000 and $53,000 is needed to start a decent increase.
Fresh Drop in BTC?
If bitcoin fails to clear the $52,000 resistance or $53,000, it could start a fresh decline. An initial support on the downside is near the $48,500 level.
A downside break below the $48,500 support zone could restart the decline. The next major support is near the $47,400 level. Any more losses might call for a fresh test of the $45,000 support zone in the near term.
Technical indicators:
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now recovering from the oversold zone.
Major Support Levels – $48,500, followed by $47,400.
Major Resistance Levels – $51,500, $52,000 and $53,000.

Ora Goodwin
Ora Goodwin
I am a well-known and respected author in the cryptocurrency field. I have been writing about Bitcoin and other digital currencies for over 5 years, and my work has appeared in some of the most respected publications in the space. I am also a regular speaker at industry events, and my insights into the crypto market are highly sought after by both media and investors. In addition to my writing and speaking engagements, I am also an active advisor to several blockchain startups, and I sit on the board of directors for the Blockchain Education Network.

Similar Articles

Most Popular

Coupon Finance Launches Innovative Peer-to-Pool Lending Protocol to Enhance Capital Efficiency in Lending Markets

Location, March 26, 2024 — In an effort to address inefficiencies within the decentralized finance (DeFi) lending space, Coupon Finance has unveiled its peer-to-pool...

HODLer Token’s Presale Kicks Off on March 28, 2024, Offering Unique Investment Opportunities

Location, March 24, 2024 — In a significant development for cryptocurrency enthusiasts and investors, HODLer Token ($HODLR) has officially announced the launch of its...

Introducing Burve Protocol: A Groundbreaking Leap in Decentralized Finance with AMM 3.0

– Today marks the groundbreaking launch of Burve Protocol, a revolutionary Automatic Market Maker (AMM) that stands at the forefront of decentralized finance...

Feathering the Nest: Hectic Turkey’s Bold Venture into DeFi Innovation

  the brainchild behind Hectic Turkey, asserts. "We aimed to disrupt the space with something that's both fun and fundamentally valuable."   Laying the Foundation   The cornerstone of...

Feathering the Nest: Hectic Turkey’s Bold Venture into DeFi Innovation

  the brainchild behind Hectic Turkey, asserts. "We aimed to disrupt the space with something that's both fun and fundamentally valuable."   Laying the Foundation   The cornerstone of...

BLOCX. Leads the Way With All-in-One Computer Manager and Announces V1.2 Release

London, UK – February 20, 2024 — BLOCX., a comprehensive digital computing platform, today announced a series of significant updates and an ambitious roadmap for...

With 950,000 New Users in 30 Days, Web3 Social Infrastructure UXLINK Surpasses 3 Million Certified Users

Web3 Social Infrastructure UXLINK innovatively develops rapidly through the "Real World Social'' and "Group" modes, and in only 10 months since the project was...

Revolutionizing Venture Capital: VNTR DAO’s Decentralized Approach

VNTR DAO announces its official launch on the Arbitrum One network, marking a significant milestone in the evolution of decentralized Venture Capital. This innovative...