The price of BTC must remain above $ 45,000 to stop the fall which is expected to extend towards $ 42,800.
Bitcoin’s price continued to struggle as bears extend Tuesday’s massive rout towards the $ 45,000 zone.
The pullback, which occurred on the day Salvadoran Bitcoin Adoption Law went into effect, saw the price of BTC drop from a high of $ 52,944 to a low of $ 42,830 before. that the bulls do not recover to record a daily close above $ 46,894.
Nonetheless, Bitcoin saw its biggest single-day drop on the daily chart since May 12, with BTC / USD falling more than 11% on the day and buyers suffering a $ 5,000 rout.
As of this writing, Bitcoin’s price is near the $ 45,385 mark as selling pressure remains. Any further loss could cause a return to yesterday’s lows.
Bitcoin price vulnerable to further losses
Bitcoin’s price hit highs near $ 53,000 on Tuesday morning, breaking through a key resistance area around the $ 52,500 area. The market failed to break above the daily high, however, and the resulting selloff quickly took the BTC / USD pair below key support at $ 50,000 and $ 48,000.
On the daily chart, the price of BTC broke below the lower curve of the Bollinger Bands indicator, with the price retesting a critical horizontal support line (red line).
BTC / USD daily chart. Source: TradingView
Attempts by the bulls to regain control have so far failed as price struggles to hold above the lower band of the Bollinger bands. The decline in the RSI below 50 and the bearish cross of the daily MACD suggests that the bears are gaining the upper hand, a signal that the price of Bitcoin may take further losses.
Currently, the 23.6% Fibonacci retracement level of the decline from $ 52,944 to $ 42,830 provides support at $ 45,218. If the price breaks below that level, the next stop could be around $ 44,500. Below that anchor point, the downside target for bears will be the September 7 low, near $ 42,800.
On the upside, the bulls have a difficult task to turn the resistance zone at the 38.2% Fibonacci retracement level ($ 46,694) into support. Exceeding this level would allow buyers to aim for the 50% Fib level ($ 47,888).
The next area of resistance is at the midline of the Bollinger Bands currently at $ 48,814, with the next supply wall likely at the psychological level of $ 50,000.
From there, BTC / USD could resume its uptrend and aim for new highs above $ 52,000.
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