The resistance located at the $50,000 price level rejected Bitcoin’s (CRYPTO: BTC) attack this weekend, but market experts suggest that the recent drawdown was nothing more than a short-term setback.
What Happened: According to CoinMarketCap data, Bitcoin reached this week’s top price of $48,098 on Saturday before sharply falling by 3.94% to $46,202, being rejected by the resistance. A press time, the coin is trading at $45,780. A Tuesday Coindesk report cites a market analyst at trading platform eToro, Simon Peters, who said that “the price has rebounded strongly now, but this upward move is showing some signs of short-term fatigue.” He anticipates that “we could see a small retracement down to lower prices before the prevailing trend reasserts itself.”
Low trading volumes and short buildup indicate that Bitcoin is probably headed towards lower supports near $44,000 in the short term. Sales Trader at U.K.-based digital asset brokerage firm GlobalBlock, Marcus Sotiriou, said that “a pullback is to be expected before” a continuation of the bullish trend.
According to Sotiriou, it is due to “declining volume with an increase in price, as well as a bearish divergence in the RSI indicator on the daily time frame.”
Read next: How High Can Bitcoin go?
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