Bitcoin hits a weekly low: will it go further?

Bitcoin continues its downward movement from the local high of $48,200. The market is fully implementing the weakening, which is demonstrated by the technical indicators of the cryptocurrency. The coin hit a weekly low at $44,800 and is trying to hold that milestone. Despite the contradictory indicators of the horizontal charts, bitcoin is still in the framework of an upward trend. At the same time, yesterday, August 18, the 200-day moving average was broken, which became an alarm signal for the bulls, and intensified the activity of the bears.

The main challenge for bitcoin in the current decline is the consolidation and a successful rebound above $45,000. As of 11:00 UTC, the cryptocurrency is quoted at $44,600 and is trying to start moving up. However, the bears will likely try to push the price even lower to the key support level at $44,200. With a bearish breakout, bitcoin could drop to $40,000 and below. At the same time, the market situation indicates a probable rebound of BTC from the current area due to the large concentration of longs and local positive investors. However, the coin made life difficult for itself by forming a resistance level at $45,200. On the one-hour chart, a bearish trend has appeared along this line, and pressure zones are now concentrated at $45,200 and $45,500. This indicates, that in the near future, the main cryptocurrency will not be able to break through the $50,000 mark. Buyers should now focus on the return of BTC's upward movement.

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On the one-hour chart, bitcoin indicators are showing signs of weakening. For example, the RSI is gradually moving below 40. At the same time, the MACD and stochastic indicate a possible bullish momentum and price growth in the near future. The overall picture of the one-hour chart indicates the coin's tenacity on this line. Bitcoin will likely try to break through $45,000 after a short consolidation.

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On the four-hour chart, bitcoin looks even weaker due to the MACD, which has gone beyond the zero mark and indicates a clear downward movement. At the same time, the RSI is trying to stay above the 40 mark, and the stochastic is trying to pull the rope, which ended in a local victory for the bears.

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A clear bearish trend is emerging on the bitcoin daily chart, where all major indicators point to a downward movement. The MACD indicator confirms the breakdown of $44,200, and the stochastic crossed the zero mark, which indicates the inability of the bulls to buy back the current price drop. In general, the horizontal charts indicate a clear breakdown of the $44,200 mark and further movement towards $40,000. With the current market sentiment and the upward dynamics of social and on-chain activity of bitcoin, the probability of a rebound to the growth area is extremely high. However, if the $44,200 mark is broken, the chances of successfully working out the local bearish trend and further movement to the key zone of $37,300 increase significantly. With its bearish breakout, the local upward trend from July 20 is completely canceled, and the likelihood of a shift to the middle of the two-month range of fluctuations increases.

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Artem Petrenko
Analytical expert
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