Bitcoin (BTC) fell below $ 50,000 again Thursday as the impact of Elon Musk’s criticism continues to surface.
Traders expect revealing buy signals
Data from Cointelegraph Markets Pro and TradingView confirmed that the BTC / USD pair did not establish $ 50,000 as support after initially falling to $ 45,650.
Musk, who spoke as Tesla’s CEO, had stated that the company would no longer accept BTC payments due to environmental concerns.
After a slow fall of three hours The BTC / USD pair rebounded to nearly $ 52,000 before losing steam again. At the time of this writing The pair was trading around $ 49,500 in high volatility.
However, as Cointelegraph previously reported, The short-term development of Bitcoin prices remained unchanged due to the reactions of Musk and the traders to him.
Hence for the popular trader Scott MelkerIt was time to use an established method to determine when the price floor was likely to be reached.
Therefore, used the Relative Strength Index (RSI), a classic indicator of overbought or oversold areas.
“I post it every time the 4-hour RSI is oversold and it works most of the time. An overbought bearish currency was the top.”, He said to his followers on Twitter.
“Now I want to see a lower low in price and an upper low in RSI. It could be that candle or it could last for days, but it’s the signal I want.”
On Thursday, I had already seen Bitcoin stop its downtrend when it hit the 21-week exponential moving average (21EMA). That line in the sand had lasted across the bull market for the past year and 2017 and is believed to provide reliable support for periods when the bulls are experiencing a short-term retreat.
The 21EMA continued to rise sharply this month, so the BTC / USD pair had to hit higher highs and lows again during the weekly periods in order to maintain its utility.
Previously, a warning had stated $ 40,000 as a potential minimum in the event that $ 50,000 was not held.
Bitcoin carries the essential moving average of the fight
Meanwhile, as investors rushed to “buy the fall,” The focus was on the large supply pool of whale buyers, which could also help to increase the price.
Bitcoin ignored whale positions above $ 50,000, despite many purchases up to $ 58,000.
However, in order to monitor the whale map resource, The number of currencies trading at a loss suggested that the “panic” was already visible in the market before the Musk episode.
“These moments have historically been good buying opportunities as they indicate panic in the market.”,TO To explainPart of a tweet on Tuesday.
A look at the buy and sell order setups on Binance also showed this Retail investors are now protecting $ 45,000, with $ 55,000 becoming tough resistance.