Since yesterday afternoon, the bitcoin (BTC) rate has been able to make a nice bounce. This bounce was the result of a massive correction last weekend with BTC losing several thousand dollars in value. While the price seemed well on its way to recover, bitcoin reached a resistance zone this morning, after which the price has fallen back somewhat. Will the support hold so that the bulls can start a further recovery?
Bitcoin (BTC) declined at $ 57,500
The bitcoin price therefore started the rise yesterday afternoon and was able to increase in value by 12% from the low point of the correction last weekend. The price reached $ 57,500 this afternoon and it seemed to be over for now. The price fell back from this resistance zone to hit support at $ 54,000 at the end of the afternoon.
For the bulls, it is now important to stick to this price zone. At the time of writing, bitcoin’s price is $ 55,674 on cryptocurrency exchange Coinbase. From here, further recovery could be initiated should the support hold up. However, if we fall through this, the bulls are a lot further from home. The price could then fall further back to the next support zones at $ 52,000 and $ 50,000.
The picture does not look too rosy on the daily chart. While the dip was bought up quite a bit yesterday, resulting in a long wick at the bottom, today the price still seems to fall through the 50-day Moving Average (MA). The coming days will show whether this is the start of a larger correction in the longer term. This is one of the situations that Michiel takes into account in his analyzes, as you can see in this race video.
Crypto market still above $ 2 trillion, bitcoin dominance is declining somewhat
Despite the slight declines at the moment, crypto market capitalization is still above $ 2 trillion. The altcoins are also gaining some ground against bitcoin. The value of bitcoin currently makes up 51.47% of the total, a decrease of about 0.4%.
The biggest riser in the top 10 is again dogecoin (DOGE). Read in this article a possible reason for the sudden increase. The now number 5 is in the green 22.4% and is worth $ 0.38. The biggest drop is polka dot (DOT) with -2.65%.