Investing.com – After a bullish start to the week yesterday, the posted a sharp correction after peaking near $ 52,000 late in the afternoon.
BTC / USD did indeed hit a low at $ 49,600 overnight Monday through Tuesday, falling 4.6% in about 8 hours.
The drop also affects the second largest cryptocurrency on the market, which just fell below the key $ 4,000 threshold. and, the top 10 cryptos that posted the biggest gains yesterday morning are now the ones retreating the most, with a 24-hour drop of 10% for Terra and more than 6% for Polkadot.
It should be remembered that the low volumes and reduced liquidity of the end of year holiday season is conducive to erratic movements and exaggerations. Indeed, the correction of cryptocurrencies since last night does not seem to respond to any information in particular.
From a graphical point of view, on the other hand, we will emphasize that the profile of Bitcoin is deteriorating with its return below $ 50,000. BTC / USD is now facing short-term support at $ 49,500, an area where the 200-hour moving average is currently located, reinforcing its importance.
A break below this threshold would put the next visible support in hourly data in sight, around $ 48,000. Below that is the 200-day moving average, currently at $ 47,720 that could be targeted.
The technical situation of Bitcoin therefore remains particularly delicate, with risks clearly on the downside, which does not exclude a plunge before the end of the year, given the specific conditions of the end-of-year holidays.
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