Possible Factors That Could Lead to Bitcoin Dropping to 48500 in the Near Future
Amidst the long-anticipated Mt. Gox reimbursements and Germany’s sale of confiscated BTC, a wave of negative sentiments is currently engulfing the market. The 4-hour RSI chart plummeted to a low of 17.88 as trading commenced in Asian markets, signaling a negative trend. The prevailing atmosphere of fear and uncertainty is tangible, prompting traders to exercise extreme caution.
Prominent Resistance Levels on the Horizon
According to the Fibonacci retracement, resistance is evident at the $56,000 mark, presenting merely one of several challenges. Substantial resistance barriers loom at $59,000, $61,000, and $63,800 levels, painting a picture of a challenging path for any potential recovery.
The past 24 hours witnessed over 230,000 traders facing liquidation, with a collective value of $654.70 million, as reported by Coinglass data. The largest individual liquidation event occurred on Binance, where an ETH USDT long position worth $18.48 million was liquidated. BTC, on its own, witnessed liquidation of long positions amounting to $204.52 million as the market slumped from $58,625 to $53,779.
Unfolding Bearish Trend
BTC has been on a sustained downward trajectory following the formation of an Evening Star pattern at its peak price of $63,834. Despite intermittent signs of minor recovery, it failed to avert the nosedive to $53,779, representing a substantial 15.50% decline. While there was a modest 4.79% bounce off the support base of $53,900 to $55,900, the cryptocurrency continues to grapple with breaking through resistance levels, encountering rejection and retracing back to $55,000.
Based on the prevailing trend, failure to hold at this juncture may pave the way for a descent to $48,500. The current support level traces back to an older zone established three years ago in 2021, during BTC’s surge to $68,000.
This phase has been characterized by fluctuations in the Bitcoin market, influenced by external factors such as the Mt. Gox repayments and the German government’s sale of confiscated BTC. These external elements have introduced additional layers of intricacy and unease, resulting in a tumultuous climate of uncertainty.
The cryptocurrency market is renowned for its volatility, with developments like these only intensifying the volatility. Traders must remain well-informed and alert. Given the tumultuous market conditions, staying informed and prepared for eventualities is crucial. While the ongoing rollercoaster ride may appear daunting, it also presents opportunities for those adept at navigating the crypto landscape.
Investors should prioritize a few key considerations – closely monitoring market charts, identifying significant resistance levels, and preparing for sudden market downturns can serve as a lifeline. The unpredictable nature of the crypto sphere demands adept strategies and a deep understanding of market dynamics to turn fortunes in your favor.
Tags: Bitcoin, Price Analysis