Losing 25% of its value in a week, Bitcoin recorded its biggest fall since it started correcting in March and dipped under the controversial $50k level today. Due to this, several altcoins have rolled back their bottoms.
For the first time in six months, Bitcoin tested a low of $49k earlier today following a week dump from $70,000. However, it has recovered briefly in the past hours due to rejection and is now floating well above the vital $51k level.
This latest dump has generated a lot of panic sell and negative sentiment across the crypto industry. Altcoins have suffered the most loss in the latest crash. Although, Bitcoin’s daily chart appears highly bearish as the price dips near the wedge’s lower boundary.
Looking at this descending wedge, which suggests more room for sell-off, BTC’s price is likely to reach the $46k range to test the lower boundary that has been providing support for months.
From that price range, we can anticipate a quick buyback capable of bringing a nice recovery in the market. A notable recovery above this wedge pattern should confirm a bullish breakout. But as of now, the bearish dominance is high.
Despite registering huge losses in the past months, Bitcoin’s price is still up by 80% on a yearly scale. This gain still putss the leading asset in a buy zone from a long-term perspective.
Bitcoin’s Key Levels To Watch
As the $49k level stands as support, the lower support area to consider for drops are $47,500 and $46,000. A slight breakdown from this wedge could bring a test at the $44,000 level.
Now that the price has bounced back a bit to $51.5k level, Bitcoin may retest the $53,486 resistance before resuming bearish. Other resistance levels to watch for an increase are $56,552 and $59,704.
Key Resistance Levels: $53,486, $56,552, $59,704
Key Support Levels: $49,000, $47,500, $46,000
- Spot Price: $51,546
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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