Bitcoin (BTC) cryptocurrency rate dropped below $ 50,000 and continues to fall. Given the size of the previous dump, the coin should drop to $ 43,000 by March 2.
Bitcoin exchange rate renewed its historical maximum, reaching $ 58,355 (Bitstamp data) on February 21. However, the digital asset began to be dumped on Monday. During the session, Bitcoin fell 17% to the local bottom at $ 47,400. Then there was a correction, as a result of which the cryptocurrency rose in price to $ 55,000. Nevertheless, on February 23, a downtrend reappeared.
The BTC price dropped below the bullish trend line that started on January 27 twice, but both times bounced up quickly. Thus, it becomes obvious that the key support zone is now located at $ 48,900. If the value of the coin consolidates below this indicator, the bearish trend will continue. Otherwise, it will be possible to hope for a reversal.
To assess the prospects of the cryptocurrency, one can draw an analogy with the previous dump that occurred on January 10 after the end of the exponential growth phase of the coin rate. At that time, the Bitcoin price collapsed by 28% in two days. If this situation repeats, then on February 23 or 24, the bottom will be reached in the region of $ 42,000. After that, the value of the asset will grow by 20% – to about $ 50,000.
It is not yet possible to determine exactly whether the dump indicates the end of the bullish trend in the Bitcoin market. Therefore, it now makes sense to buy coins at the bottom (around $ 43,000) and sell them after the price of the coin rises to $ 50,000. Taking into account the historical data, we can assume that the downward movement will continue for at least two weeks after the rebound. If during this period the bulls manage to defend the $ 40,000 barrier, then it is worth betting on an upward trend.
The bullish trend began in March 2020. Bitcoin has risen in price by 1484% in almost a year, so control over the market should objectively go into the hands of bears. BTC has never flown so high before, which makes it difficult to predict sellers’ targets. But the starting point of the trend indicates that Bitcoin may well fall in price to $ 15,000.
Bitcoin Price Analysis: Why Has Bull Run Stalled In Bitcoin Market?
Bitcoin Price Analysis: BTC Is On The Verge Of A New Bull Run
Ethereum Price Analysis: The Bearish Trend May Persist In Ethereum Market
Bitcoin Price Analysis: Does The Bull Run End In BTC Market?