The digital asset space continues to count more losses as Bitcoin struggles with taking the $50,000 mark. The crypto, which has attained $58,000 at a point, finds it hard to return to its previous position. While some linked the industry’s price correction to the sudden fall in stock prices, others believe that the dollar gains some strength after the pandemic had weakened it for many months.
Either way, Bitcoin has not retaken the $50,000 position, and this development worries short-term investors. The investors, who are mostly responsible for the increased selling pressure, would not sell their assets within the price range due to the decline. Long-term holders often see the bigger picture and aren’t worried about periodic price drops like the current fall.
Bitcoin struggles to retake $50,000
On Wednesday, buyers had helped the asset appreciate to a certain level, and the asset had taken the $52,000 position before it fell. Experts reveal that the crypto was too weak to fight the resistance and that market bulls lost their momentum when they tried to push the price above $52,000.
The result led to more drastic drops for Bitcoin as the asset fell within the $46,000 range when the price rejected above the price. Currently, the price has 58,000, $59,000 and $60,000 as its resistance level, while $40,000, $39,000 and $38,000 holds its closest support.
The price drop to the $46,000 mark might have been a blessing in disguise as the asset rose higher immediately but still not touching the $50,000 mark. When the price was inches away from $50,000 after the surge, it lost support and fell to $47,000.
atest charts show a possibility that the frequent drops would give the market bulls enough momentum to take prices to more significant highs. It’s safe to note that the current support is unreliable, and any negative market movement could cause more price corrections down the road. Indicators show that if the current support is lost, Bitcoin would likely drop around the $40,000 range, which would cause a drastic loss for holders.
RSI indicator is currently on the 50-level
On the other hand, if Bitcoin happens to bypass resistance and attain the $52,000 mark, it would assure more gains up the charts. Market bulls would likely put the next stop around the $58,000 before more attractive gains come into place.
The RSI (14) is around the 50-level, showing a possibility of more upward movements in the future. The asset’s growth is currently not limited, and the bulls are committed to taking the crypto above the $60,000 point.
Bitcoin’s current position is filled with numerous possibilities as prices continue to remain indecisive as it fluctuates through $47,000 to $50,000. Fortunately, a significant part of the market is holding, meaning that there will be lesser sell-offs from the space until BTC shows a significant uptrend. Investors want to assure more value for their money, hence their determination to reduce selling pressure.
Asides from the reduced sell-offs, buying pressure is coming along nicely as investors are buying the dip, seen in MicroStrategy’s latest $10 million worth of Bitcoin purchase.