The last three days have seen Bitcoin devalue in worth after it flipped the $50,000 resistance. Everyone was thrilled with the news as coinfomania reported that the breakthrough happens within 48 hours of the previous attempt on Saturday.
The price mark has been anticipated since May as many refer to it as the border between unlocking new highs or lows and many traders were rather sceptical when Bitcoin hit this milestone.
Their scepticism paid off as many took profit at this height and the bears capitalised on it as data from the crypto derivatives market shows. These factors negatively affected the largest crypto by market cap. After the milestone, BTC was on a free fall with little recovery along the way.
As of the time of writing, the coin is trading at $46,962. Most traders never anticipate a drop to this level and wonder when it will stop or how low the king coin will dip.
When will it stop?
The exact time bitcoin free-fall will stop is a question only time itself can answer. Indicators are not pointing to an end soon as the Relative Strength Index (RSI) is currently taking a dip. There is no hint that this indicator will recover soon.
The Moving Average Convergence Divergence (MACD) also diverged; giving off a bearish signal. In terms of market fundamentals, it is fairly flat with little tilt to the bulls. Fortunately, bitcoin traders are responding to the fundamentals positively as the fear and greed index rose from 73 in the last 24 hours to 75 as of the time of writing.
The key to price recovery lies with the fundamentals as almost all indicators are pointing to further price drop. It is important to note that BTC has slipped back to the $45k-$48k channel and we may count on the bulls to defend the $45,000 support.
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