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Saturday, May 28, 2022

Bitcoin Slips Below $48K, Next Bounce Back Zone Being Eyed

On Wednesday, Bitcoin (BTC) prices headed downwards and tested new support levels. The recent bullish trajectory broke down. The next support level is predicted to be around $44k.

A Break In The Bitcoin Prices

TradingView and Cointelegraph Markets data showed that BTC/US had lost about 2% during the night on Wednesday. This was the consequence of a rejection of bulls trying to take back the $51,000 zone. It is an important long-term zone of resistance’s uppermost limit. The rejection forced BTC to pause and think. Analysts think that is the start of a well-deserved price correction.

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Michael van de Poppe, a contributor to Cointelegraph, considered $44,000 as a significant support level if the downside continues. He explained that right now the critical zone of resistance is $51,000. The area where BTC will find support potentially should be somewhere between $42,500 and $44,000.

Scott Melker, another trader, was of the opinion that a possible bullish reversal was already happening on the lesser timeframes. He chalked up the reason to the index of relative strength (RSI) attempting to move past the territory of being “oversold”. An increase in the volume that is on-chain helped this. The volume increase is also something that is needed for the reliability of the upside.

The level of buying and selling on Binance, a major exchange, proves that $47,000 is the closest strong level of support, with regards to spot traders.

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However, the Bitcoin descent had also affected the major altcoins. In typical fashion, they posted losses which were even deeper. Ether (ETH) fell by more than 6% to around the $3k support level. Solana (SOL) was the biggest loser in the biggest ten, shedding almost 14%. Cardano (ADA) fared better in the end as it managed to maintain a 34% weekly gain.  

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