Bitcoin, one of the most famous cryptocurrencies, breaks down after not being able to grasp support. It was in a temporary risk two days ago, as per Yuval Gov of Cryptopotato, and now, it dropped $800 in 48 hours.
Bitcoin didn’t make it as it continued to drop $800, and it’s on its fifth time. Afterward, it continues to break down at $9,150. After the significant red candles as well, the renowned cryptocurrency went down from $9,150 to $8,660.
Based on the daily charts from the market analysis of Cryptopotato, the target is not by chance. The backing area contains a moving average line of 50 days.
After searching for support, Cryptopotato saw that the correction lies on the 38.2% Fibonacci Retracement or Fib level. It’s indicated on the 4-hour chart, and it’s at $8,883. According to Gov, the correction can reach $9,000 to $9,100 as well. Along with the possible correction level, it also has Fib levels of 61.8% and 78.6%. Though, it’s not looking good for Bitcoin.
Based on the data by CoinGecko, Bitcoin has a market capitalization of $159.5 billion only. It has a big gap as compared to the total market capitalization of $240 billion. Moreover, the dominance index of Bitcoin is 66.4%.
With a resistance level of $8,883 at a Fib level of 38.2%, Bitcoin is under correction before it reaches the range of $9,000 to $9,100. The 4-hour chart has a $9,200 level, and it has a moving average line of 200 days. As shown in the 1-day chart, the resistance area is at $9,400 to $9,500.
The initial support based on the 4-hour chart yesterday was $8,660 at a 50-day moving average. As for the 1-day chart, it states $8,400. It also shows the rising trend-line, which is now around $8,200.
The everyday RSI ruined the 57-horizontal back-up, and this break down kept the price for about 10 days. Now, the RSI found backing on a previous 44-level resistance. The RSI oscillator is making its way to the overrated territory. However, there’s still more area to go on the hitch, and it’s as per the oscillator.
Following the value action, the trading volume rose to a 10-day high. The increase happened after daily declines, and it was after the previous two weeks.
With the price analysis conducted for Bitcoin, one of the questions is to where it’s heading now after the latest breakdown. Can it still recover and bounce back to the game?