Barely a day after Tesla’s support for Bitcoin payments skyrocketed in the industry, the assets have started to record even more significant falls. Tesla’s news on support Bitcoin as an alternative payment means got people excited, as the electric car company will allow people to buy some of its cars with Bitcoin.
This is a significant development from the previous outlook as not many mainstream companies see Bitcoin as a suitable currency. The surge was short-lived as the industry see a major reversal, and Bitcoin trades at around 6% lower than its previous price. Bitcoin’s decline to $52,000 shows some bearish activities, which could significantly reduce prices if the trend doesn’t change.
Bitcoin declines to $52,777
The asset had previously shown some strong bullish signals, but the recent gains could have caused the reversal. The short-term price gain led traders to increase selling pressure as they were now selling assets at a more attractive price. The asset tested the $54,000 mark before declining further than most expected.
The asset is highly volatile, meaning that sudden changes in the market could easily affect its price. The asset’s current resistance points holds at around $61,000, $62,000 and $63,000. On the other hand, the support holds around $50,000, $48,000, and $46,000. All these prices determine whether the asset would see more growth or move further downwards.
The asset stated the day with a decline, significantly different from yesterday’s move towards the $54,000 mark. The asset had appreciated slightly, and it moves upwards as it tried to retake the $57,000 mark. If the asset manages to gain some bullish momentum and move upwards, it is likely to break the nearest resistance.
Buyers should keep in mind that if the asset fails to appreciate and continues moving downwards, it’s likely to continue with that movement. The asset, which had just started recovering from the previous falls, records more declines which could be dangerous for the industry.
The Crypto industry records price fall
Bitcoin’s position as a benchmark coin affects other crypto’s growth, and it can influence their declines also. Still, the asset is not trading below the 21-day moving average, which is a source of relief because if it had been, more price drops are inevitable for the king coin. The upward movement against the moving average could give the bulls the strength they need to record gains for the asset after the previous losses.
Buyers should keep it in mind that the $58,000 support might be the strongest push to take the asset to more prominent highs. The asset’s movement is still unknown to many, but sources claim that Bitcoin’s decline was due to a reversal caused by selling pressure after the short-term gains.
The technical indicator, RSI (14), is moving above the 50-level, which could mean that the bulls are returning into the industry after the price drops. Since the asset has hit the $52,000 mark, the bulls would likely hold the crypto from further downward slides, which could change things for the digital asset.