BTC/USD Drops Sharply and Pulls Back as Bitcoin Retests $50K

Bitcoin Bulls and Bears Continue Price Tussle as Bitcoin Retests $50K – August 31, 2021

After its rejection at the $50,000 overhead resistance, Bitcoin fluctuates between $48,000 and $49,000 price levels as Bitcoin retests $50K. In the first instance, BTC’s price dropped sharply to the low of $48,200. Later it pulled back above $49,000. The bears would have sunk Bitcoin if it has broken below $48,000 support.

Resistance Levels: $50,000, $51,000, $52,000
Support Levels: $40,000, $39,000, $38,000

BTC/USD – Daily Chart

In today’s candlestick, BTC price plunged to $48,200 support and then pulled back. The pullback was above the $49,000 high. The candlestick is done with a small body and a long tail. The long candlestick tail describes that there is strong buying pressure above the $48,000 support.

On the upside, the retest at the $50,000 high will continue as long as the $48,000 support holds. Besides, the bullish runs will continue if the BTC price closes above the $50,000 psychological price level. Besides, further rejection at the $50,000 high will cause Bitcoin to fall to the breakout level of $42,000 price level.

Meanwhile, the RSI period 14 is at level 60. It indicates Bitcoin has room to rally on the upside. Bitcoin is trading at $49,440 at the time of writing.

Bitcoin (BTC) Indicator Reading

BTC/USD is above the 80% range of the daily Stochastic. It indicates that the crypto is trading in the overbought region. This implies that the bullish momentum is likely to subside. In other words, sellers are likely to emerge in the overbought region to push prices down.

Meanwhile, in a strong trending market, the overbought condition may not hold. Bitcoin will continue to rise on the upside.

 Bitcoin (BTC) Price Prediction: BTC/USD Drops Sharply and Pulls Back as Bitcoin Retests $50K
BTC/USD – Daily Chart

Nevertheless, BTC’s price has broken above the $49,500 as Bitcoin retests $50K. On August 23, the bulls broke above the overhead resistance but fail to close above it.

BTC’s price would have rally above $51,000 high but plunged to $47,000 support. Bitcoin has recovered in the last 24 hours.

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