Investing.com – After a stable start to the week, Bitcoin stalled yesterday, breaking below the $ 50,000 level and bottoming at $ 47,340, and remains close to that low on Wednesday morning, still below $ 48,000.
From a technical standpoint, it’s important to note that the drop gave rise to a test of the 200-day moving average, currently at $ 47,775. If Bitcoin fails to stay above this threshold, the chart environment will tilt even further downward.
We must also take into account an uptrend line visible in hourly data since early August, and currently located around $ 46,500.
If the price continues to fall and breaks these thresholds, the chart support of the $ 44,000 area will be the next potential target, before the low marked during the flash crash in December of close to $ 42,000, then the major psychological threshold of 40,000. $.
On the upside, a return above $ 50,000 is the first step to improve the graphical profile of Bitcoin, but it is only above $ 52,000 that we can again consider buying. lasting more serenely.
As for the other major cryptocurrencies, they are all showing in the red as well, moving to $ 3,800, down 3.87% over 24 hours at the time of writing. It is, however, which shows the largest drop in the Top 10 crypto, dropping more than 7%, following new all-time highs earlier this week.
Finally, it will be recalled that caution is required even more than usual on cryptocurrencies this week, due to the reduced liquidity conditions during the end of year holiday period.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy / sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.