Bitcoin falls to $49k but recovers to $52 – CRUCIAL LEVELS TO WATCH
In the last 24 hours, Bitcoin (BTC) has experienced a significant decline, dropping below the $60,000 price range. Given the current trend and the market’s volatility, could we see a further drop to the $40,000 price range?
Analysis of Bitcoin’s price trend highlighted a significant downturn over the last 24 hours, with a drop of over 9%.
Bitcoin was trading at approximately $52,900, with its decline hovering between 8% and 9% within this period.
Using the price range tool, it was evident that since the onset of the major decline around August 2nd, Bitcoin has experienced a substantial decrease in value, amounting to over 24%.
Using the Fibonacci retracement indicator to analyze Bitcoin’s price trend offered valuable insights into potential future movements.
Notably, if BTC’s price managed to hold above the 23.6% retracement level, it could ascend to test higher Fibonacci levels.
The chart showed it could specifically test the 38.2% level at approximately $56,847.56 or even the 50% level at about $59,127.13.
Conversely, if the downward trend persists, the next critical support, according to the Fibonacci retracement analysis, would be at the 0% level, around $49,467.88.
Additionally, the Relative Strength Index (RSI) analysis showed it was in oversold territory. Typically, this could indicate an imminent price reversal or bounce, as buyers might consider it an optimal point to enter the market.
However, it’s crucial to note that during strong downtrends, the RSI can remain in the oversold zone for extended periods.
Additionally, the Moving Average Convergence Divergence (MACD), another momentum indicator, shows bearish momentum.
Considering these factors—the bearish MACD, the oversold RSI, and Bitcoin’s positioning relative to key Fibonacci levels—the short-term outlook for Bitcoin appears to be bearish.
