BTCUSD (Bitcoin) has been trending downwards since late March when further price advances got curbed at the 48,000 region. Although the price has managed to halt its decline and is currently experiencing a consolidation phase, the technical picture seems to be deteriorating for the cryptocurrency.
The momentum indicators suggest that bearish forces continue to hold the upper hand. Specifically, the MACD histogram is currently beneath both zero and its red signal line, while the RSI is hovering in the negative zone.
Should selling interest intensify further, the price could encounter immediate support at the recent low of 38,530. Falling beneath this floor, the bears could target the 36,340 barrier. Further downside moves may then cease at the 2022 low of 32,950.
Alternatively, if buyers re-emerge and regain control, initial resistance could be met at the 43,000 hurdle. Conquering this barricade, the price might ascend towards the recent reversion point of 48,000, which overlaps with the 200-day simple moving average (SMA). Higher, 52,000 could prove to be a tough obstacle for the bulls before the spotlight turns to 59,500.
Overall, BTCUSD has been rangebound in the last three weeks, but broader near-term risks remain tilted to the downside. Therefore, a dive beneath the 38,530 floor is needed to boost bears’ hopes for a sustained downtrend.
