BTC bulls are trying to weather downside pressure that has seen Bitcoin trade as low as $47,600
Bitcoin price is down 2.1% at time of writing, trading around $48,475 following the rejection from highs above $50,000. The top cryptocurrency's value is below a critical resistance level, and fresh losses could occur if the price fails to stay above $49,000.
BTC price outlook
The price of Bitcoin corrected to lows of $47,600, cutting gains made when bulls rallied to a multi-month high above $50,000. The flagship cryptocurrency has recouped some of its daily losses, with buyers testing and breaking above the 0.236 Fibonacci retracement level ($48,282).
Bitcoin's price has even touched highs of $48,622, although profit-taking has limited the upside, and prices have dipped below $48,400 again.
To continue higher and recover most of the recent losses, the BTC/USD pair needs a clear break above horizontal resistance around $48,650 and the 0.382 Fibonacci retracement level of the decline from $50,491 highs to $47,600 lows at $48,705.
The 20-4-hour exponential moving average at $48,727 presents the next hurdle. Viewed together, the confluence of barriers provides a critical supply zone above which increased buying could set bulls towards the 0.618 Fib level ($49,387).
BTC/USD 4-hour chart. Source: TradingView
The 4-hour chart shows bulls might not have the upper hand yet, with the Relative Strength Index looking to climb towards the 50-mark. The 20 EMA is also curving downwards to add to the potential downside for BTC/USD in the short term.
If the price turns below the 0.236 Fib level, bulls will rely on initial support around $48,000. Here buyers could still drive an upside break and reclaim the highlighted resistance zones. However, if new downside pressure forces bulls to go lower, the next anchor would be at the 50-4-hour moving average ($47,618).