The industry was thoroughly shocked due to the recent price crash that led to losses for all BTC holders. Bitcoin wasn’t the only one in the red zone; other coins like Ethereum, Litecoin, and Bitcoin Cash also saw piece corrections, which means that the whole industry was going towards the correction stage.
Although the asset has recovered a considerable part of the value lost, moving from $46,000 to $50,000 within hours, the charts show that Bitcoin might go downwards as market bears are gaining more control of the market. Other assets should expect a similar downward movement due to Bitcoin’s position as the benchmark asset, which usually affects the industry’s outlook.
Bitcoin faces price crash
Usually, when Bitcoin is moving towards an uptrend, other assets show a similar positive outlook, showing the crypto’s importance in the sector. The asset’s present position is around $50,000 as at press time, which means that it struggles to retake its lost value.
While Bitcoin might retake the $57,000 position, indicators show that it would likely see a pullback as the asset is not strong enough to fight the present resistance. Yesterday’s climb to $50,000 became successful, as it shows signs of maintaining the upward movement. The crypto’s resistance level is around $58,000, $60,000 and $62,000. On the other hand, its support holds around $40,000, $38,000, and $36,000.
Investors were surprised went BTC went gradually from $54,000 two days ago to around $46,000 in some hours. The asset tested the $45,000 mark, which shows around a $10,000 margin from its peak. While the asset is still around the $50,000 mark, 11% lower than usual, the market’s determination to hold the asset persists.
Bitcoin’s market is looking bearish
The analysis shows that the asset wasn’t able to overcome the resistance around $54,000 after its price drop some days ago, and the rejection led to more drastic falls as the support level did not hold the crypto.
The asset is still very volatile, and the growing prices show that the asset is aiming towards a bearish market. If the asset moves below the upper boundary, there is a likelihood that the downtrend would persist as the asset is at a very delicate level.
Charts show that if the asset eventually loses $42,000, then it would hit some vital support as it moves downwards. It would hit $40,000 and $38,000, which would try to hold the crypto against a severe price crash.
The market bulls have to keep the price aligned with the 9-day and 21-day moving averages to ease the possibility of breaking against vital resistance. When the price aligns with the MA, it would take the price above the upper boundary and possibly hit its most significant resistance point, $58,000. If the drive persists, the asset could reach as high as $60,000.
The RSI (14) shows there could be a reversal, which would mean that Bitcoin would face more price drops as it struggles to stabilize. The buyers are the only ones that can keep the asset moving upwards by imposing new buying pressure to help Bitcoin record higher prices.