Bitcoin took a bearish turn after trying to flip the $58k resistance. After the rejection at $58k, the cryptocurrency came crashing down and steadied around $56,000. The price retracement was met by stronger seller congestion when Tesla boss Elon Musk announced that the company will stop accepting bitcoin payments for its services.
Recent price actions have resulted in a decreased market cap. As of the time of writing, the BTC market cap is over $930 billion. Prices keep spiraling down as more traders lose a lot of funds.
Traders lost $1.9 billion as more than 38,000 long traders got liquidated as a result of the price drop. The fear in the market is great as more traders are selling off their assets.
As at press time, the fear and greed index is tilting toward almost extreme fear. Until the current market FUD subsides prices will keep decreasing and may not recover as expected by many buyers.
The good news about the current situation is that the whales are not too affected by the FUD. On-chain analysis shows more hodlers are still holding bags and even buying dips.
However, other data show more bearish engagement than the bulls. The bulls are recovering as the number of bulls present in the market increases by the minute.
As of press time, BTC is trading above $49k. If the current bullish growth continues, BTC may surge as high as $51k. The bulls will easily overrun the $50k resistance and may flip $51,000 if conditions remain the same.
A turn for the worse will see the bulls struggle to keep prices above $49,000. More fear, uncertainty, and doubt will make flipping the $49k support a walk in the park as more whales may take part in the selloff.
The strongest support at the time of writing is $47,000. A price around $48k will be enough to fend off an attack on this critical support.
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