Bitcoin Retreats Below USD 50000

Bitcoin continued to struggle below the critical USD 50,000 resistance level on Thursday. The short-term downtrend over the past month remains in effect, which could limit further upside beyond $50,000-$60,000.

The famous cryptocurrency is down about 4% over the past 24 hours, although support at around the 200-day moving average (now at $46,500) could stabilize the current pullback.

BTC buying activity remains weak despite several oversold signals on the charts. This situation reduces the chance of a significant price increase heading into January, especially given the loss of upside momentum on the weekly and monthly charts.

Bitcoin may face another 20% plunge in coming weeks, as risk is heightened one week ahead Fed’s monetary policy meeting.

The world’s most prominent digital currency was valued close to $49,800 early this morning, before briefly climbing above $50,350 hours later. However, it subsequently dropped below $50,000, and it has been trading in the red territory of that price since then. This afternoon, the cryptocurrency fell to as little as $47,537.66, its lowest since Monday.

The price of Bitcoin has traded in the negative for the most part of Thursday, a move that is in sharp contrast to the positive fundamentals the Bitcoin market is currently recording.

Taking a look beyond the price, institutional investors that consider Bitcoin as their safe-haven assets are still buying, as in the case of MicroStrategy who just scooped additional 1,434 units of the cryptocurrency.