How high is the chance for Bitcoin (BTC) to recover positions lost after yesterday’s drop? Analyst Denys Serhiichuk explained.
Yesterday, the cryptocurrency market faced one of the biggest declines in recent times. All cryptocurrencies visited the red zone.
Market volatility spiked yesterday, and the Bitcoin (BTC) price is down about 19% throughout the day. Not waiting for a retest of the $53,400 target level, the bears pushed the pair from a monthly high of $52,956 to a daily low of around $42,900.
It is worth noting that Bitcoin price jumped to $47,745 in the afternoon. Today, it is likely to consolidate in a sideways range with support near $46,000.
On the daily time frame, the indicator lines broke out of the overbought zone and are now in the neutral zone. The probability of continued decline and recovery of the market is approximately the same. Therefore, if the bears push the $46,000 support today, the pair could test the $42,447 level.
If the market manages to climb above the $47,745 resistance, a return above $50,000 can be expected.
On the weekly timeframe, Bitcoin (BTC) must close the body of the candle above the $46,560 level. If buyers can make it through, a retest of $50,000 is likely.
Bitcoin was trading at $ 46,200 at the time of writing.
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