The entire crypto market has turned red with several digital currencies registering massive sell-off after such impressive growth in past weeks. Bitcoin (BTC) is amid a major correction following a failure to breach the psychological level of resistance at $60,000. The price of BTC has advanced considerably touching an all-time high of $58,367 before moving lower from this peak. The decline was stopped at a low level of $44,888 during the sudden plunge. Bitcoin (BTC) further upside may be limited until additional fundamental events can fuel speculation to a new all-time high. At the moment the asset retains its no. 1 spot on the Coinmarketcap table with the current BTC/USD spot price down past 20% from the record high established on 20th Feb 2021, with a current market cap of $887.35 billion, and a total of $106.05 billion in trade volume over the past 24 hours. BTC/USD is trading presently at $49,000. Amid the market correction phase led by BTC, almost all coins from the top 10 list are in the red zone. Bitcoin is under heavy downside pressure as a widespread sell-off continues to engulf almost the entire cryptocurrency market.
*The price of BTC has advanced considerably touching an all-time high of $58,367 before moving lower from this peak
*The decline was stopped at a low level of $44,888 during the sudden plunge
*Amid the market correction phase led by BTC, almost all coins from the top 10 list are in the red zone
Key Levels
Resistance Levels: $60,000, $55,000, $50,000
Support Levels: $45,000, $42,000, $40,000
BTC/USD Daily ChartIn terms of technical analysis, the Bitcoin price is still trading above MA 50 and MA 200 on the daily timeframe. Therefore the prevalent trend is yet to be invalidated and there is little to worry about the bullish trend. BTC price was unable to continue its growth past the $58,367 while the bearish momentum breached the support of $45,000, but the pair managed to gain a foothold above the average price level.
Beneath here, the nearest support level is located around the psychological mark at $40,000, which coincides with the MA 50 support zone. Losing this point would quickly push BTC price down to $31,958 buyers congestion zone. The least resistance path is downwards, particularly if the price trades below $45,000. However in the long-term view, if bulls close the daily candle above $50,000 there are many chances of seeing the lead crypto trading at $60,000 within the next few days.
BTC/USD 4-Hour ChartThe 4-hour chart illustrates a massively bearish relative strength index (RSI) although at oversold. This technical indicator can identify market positions either oversold or overbought, however, the correction has proved difficult to stop, with BTC/USD losing various tentative support levels like $48,000 and $45,000. Meanwhile, BTC is testing the ascending trendline support at $45,000 while declines toward 4 hours MA 200 at $41,500 beckons.
A dive below the ascending trendline will signify increasing selling pressure. In other words, BTC is likely to continue with the breakdown until formidable support is established. The BTC/USD pair is only bullish while trading past the MA 50 at the $52,500 level, key resistance is found at the $55,000 and the $58,367 levels. If the BTC/USD pair stays below the $52,000 level, sellers may test the $42,000 and $40,000 levels.
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