Bitcoin dropped by a sharp 10% over the past 24 hours as it headed towards $50K. The cryptocurrency has been falling throughout the entire week after slipping beneath an ascending trend line around the previous ATH from February at around $58,300, back on Monday.
It initially found support at $54,000, but it was broken down yesterday, causing Bitcoin to fall further into the .618 Fib Retracement at $51,540. Today, the price decline continued as the 10% price fall caused BTC to record a current low of $50,360 according to Bitstamp.
On March 20th Bitcoin was rejected trying to break through the $60k resistance level. Since then, BTC lost almost $10k of its value. In fact, $50,300 is the lowest price BTC was trading at since back on March 8th.
The bearish momentum follows the global markets. On Wednesday, major Wall Street indices saw 1-2% crashes, and today the bloodbath continues with Nasdaq deep in the red.
On a daily timeframe, Bitcoin broke down a critical ascending trend-line at around $54k and is now struggling to stay on top of the 50-day moving average line which is currently around the $51k mark. Besides, a daily close above the latter is the first condition to stay safe from a deeper plunge towards the mid 40k zone.
BTC Price Support and Resistance Levels to Watch
Key Support Levels: $51,540, $51,000, $50,000, $49,195, $47,700.
Key Resistance Levels: $53,500, $54,000, $56,000, $58,350, $60,000.
Looking ahead, the first level of support beneath $51,540 lies at $51,000 (50-day MA). This is followed by $50,000, $49,195 (.382 Fib Retracement), $47,700 (downside 1.618 Fib Extension), $46,000, and $44,750.
On the other side, the first level of resistance …
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