- Bitcoin price prediction turns negative due to multiple factors
- Crypto markets react negatively to US capital gains tax proposal
- Volatility increases due to loss of numerous supports under BTC price
- BTC turns bearish and breaks below $50,000 to touch a low of $47,555.
The spike in volatility brings another round of bearish outlook in Bitcoin price prediction. The Bitcoin price breaks past multiple lower supports to reach $47,555 low as the market grapples with numerous negative news. Most technical indicators have turned bearish or have a negative outlook for the next few days. A proposal by the US government to bring capital gains tax for crypto has also incited fresh new fears in the markets.
The oversold readings are getting prominent as various indicators flash red signals. From the RSI to the MACD, the pair is struggling to maintain any semblance of positivity. Things don’t look good on the daily charts as well, and the recent correction has wiped out the bullish outlook. According to Bitcoin price prediction, the profit-booking can trigger fresh selling in the pair taking the BTC/USD below $45,000.
The pair faces heavy resistance near $54,000, which caps the upper limit on the hourly charts. The thin volumes and heavy volatility on the weekend can further worsen for BTC/USD pair. Price recoveries will be hampered further if more pivot points give way and selling intensifies.
Bitcoin price movement in the last 24 hours: BTC drifts lower as supports cave in
The break below $50,000 has opened up new lower levels on the hourly charts. As per Bitcoin price prediction, the pair is in an extended bearish rally and ignoring oversold signals. The bottom is not in sight as the Bollinger Bands are also widening further. The decline can stabilize near $47,000 if the bears subside the selling pressure due to thin weekend liquidity.
The current downfall has bought the BTC price down 27 percent from $65,000 highs. As suggested by Bitcoin price prediction, the short-term trend is bearish, and the BTC price may touch the $42,000 level. The intense pressure is seen on the charts by the lower-low candlestick pattern for the last three consecutive trading days. Currently, it is trading at $50,606 and is at the lowest levels since early. March.
The cheer from the Coinbase listing is now over, and positive news is scarce in the crypto market. Traders and investors are sitting on the sidelines after booking massive profits from last Month’s rally as per Bitcoin price prediction. The pair have attempted to recover some of the losses, but the short-term outlook looks exceptionally bearish, and losses are going to continue going forward
BTC/USD 4-hour chart: Hourly charts wear a bearish outlook
A bearish outlook governs the BTC price as the pair looks like red candlesticks over hourly charts. The culmination of negative news, along with weak fundamentals, has led the pair to slide lower. The March bull rally left many support and resistance points untested. The present decline has covered most of the support points on its journey lower. However, the weakness is continuing, and the pair is likely to continue its journey lower.
The technical indicators are all in the negative zone. From RSI to MACD, the pair is facing a confluence of red signals. The RSI stands at 42 with a downward slope. The MACD is showing a negative slope. Also, the Stochastic RSI is in the deep-red territory. The rising wedge pattern is further threatening any bullish recovery.
The 100-day EMA is showing signs of a downward slope. If the pair slides below the 100-day EMA, the pair can decline to touch $40,000. However, the bulls have lined up strong support at $47,500, and the pivot point can emerge as a buy signal for accumulation provided the pair stabilizes over the weekend.
Bitcoin price prediction conclusion: Bearish outlook to rule the weekend
The capital gains tax can inject confidence in the crypto market. The US plans to double the rate of capital gains, and the same can hurt the crypto traders who rely on huge volatility to earn handsome returns. The regulatory fears can cause the pair to slide below the 100-day EMA.
The continued sell-off can accelerate over the weekend. The bulls will have to stage massive defense at $47,500. The rising wedge patterns, along with an emerging asymmetrical triangle, will keep the buying in check. As per the Bitcoin price prediction, the current outlook looks negative in the short term.
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