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Traders Eye New Lows For Bitcoin As The Cryptocurrency Fails To Build Upon $50,000 Support

Once again, the price of Bitcoin has fallen under $50,000 on Thursday due to criticism from the Chief Executive of Tesla, Elon Musk. The world’s richest man withdraw his support of Bitcoin through a tweet that brought about a market crash. Approximately $300 billion were taken out from the market last evening (U.S time)

According to the data from Cointelegraph and TradingView, Bitcoin has failed to build $50,000 support after falling to $45,650. Billionaire Investor and Tesla Chief Executive Elon Musk have claimed Tesla will no longer be accepting Bitcoin payments due to the environmental concerns surrounding the cryptocurrency.

Bitcoin had been slowly crashing for 3 hours before rebounding up to $52,000. However, it became stagnant once more. As of now, the price is trading at around the $49,000 mark and the price now will need to shows some strong signs of price consolidation.

Bitcoin price trends in the long-term remain unchanged by Musk and trader’s responses. In fact, Scott Melker, a renowned trader, used the Relative Strength Index (RSI) to determine the price floor Bitcoin could potentially hit.
Bitcoin’s downtrend was short-lived on Thursday when the crypto encountered a 21-week exponential moving average (21EMA). The 21EMA served as the line that provided reliable support in 2020, and in 2017 amidst the periods when bullish momentum was met with short-run retracement. Bitcoin is demanded to return to setting higher highs and lower lows on weekly periods in order to preserve its utility as the 21EMA rises sharply this month.

A prior warning was given with $40,000 as the potential new low if the $50,000 fails to hold on. On the other hand, investors have rushed to buy the prices as they decline, sparking attention with whale buyers putting clusters of bids. The transaction of coins on the Whalemap implied a general panic in the market prior to comments made by Musk.

The buy and sell order on Binance configurations indicated retail investors were now protecting $45,000 along with $55,000 hopefully being the next mark of significant resistance.

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