Bitcoin Price Analysis: BTC/USD stages a quick bounce above $50,000 after the 11% sell-off


The wild ride in Bitcoin continues in Tuesday’s Asian trading, as the BTC sellers are back in control, knocking off prices by almost 11%.

Although, strong bids emerged just above $48,500 levels, prompting the flagship cryptocurrency to stage a quick recovery back beyond the $50,000 mark.

The volatility around the most favorite digital remains elevated, as markets rethink the recent record rally, in the wake of the cautious comments from US Treasury Secretary Janet Yellen, Tesla’s founder Elon Musk and Microsoft co-founder Bill Gates.

Billionaire Elon Musk tweeted last Saturday that its value ‘seems high’ last Saturday. Meanwhile, Yellen said that the granddaddy of cryptocurrencies is extremely inefficient for conducting transactions. Her comments triggered Monday’s 17% flash crash from near-record highs reached at $58,367 on Sunday, as the rates fell as low as $47,821.

Bitcoin holds above the critical 21-DMA support

Despite the renewed sell-off, the BTC bulls have managed to defend the critical support of the bullish 21-daily moving average (DMA) at $47,336. Should the latter cave in, Bitcoin could see a fresh decline towards the 50-DMA at $40,287.  

BTC/USD: Daily chart

On the flipside, the record highs could be back on the buyers’ radars, if they manage to find a foothold above the $50K mark. The critical barrier awaits at the rising trendline resistance of $59,098.

The 14-day Relative Strength Index (RSI) has turned south but holds above the midline, keeping doors open towards the all-time-highs.

BTC/USD additional levels

BTC/USD

Overview
Today last price 50,305
Today Daily Change -4185.82
Today Daily Change % -7.73
Today daily open 54155.99
 
Trends
Daily SMA20 47233.46
Daily SMA50 39930.96
Daily SMA100 30609.45
Daily SMA200 21267.35
 
Levels
Previous Daily High 57567.85
Previous Daily Low 47821.6
Previous Weekly High 56348.35
Previous Weekly Low 45855.52
Previous Monthly High 41987.21
Previous Monthly Low 27772
Daily Fibonacci 38.2% 51544.67
Daily Fibonacci 61.8% 53844.78
Daily Pivot Point S1 48795.78
Daily Pivot Point S2 43435.56
Daily Pivot Point S3 39049.52
Daily Pivot Point R1 58542.03
Daily Pivot Point R2 62928.07
Daily Pivot Point R3 68288.29

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets prepare for a bullish October

Bitcoin price is experiencing a momentary downswing as it sets up a falling wedge pattern. Similar to the big crypto, Ethereum price is also forming a bullish pattern. However, Ripple seems to be bouncing off a support floor without any technical formations in play.

More Bitcoin News

XRP and XLM in trouble as CBDCs aim to make cross-border remittances cheaper and faster

The outcome of recent Central Bank Digital Currency (CBDC) pilots shows slashed cost and reduced transaction time. Cryptocurrencies currently utilized for making cross-border settlements, Ripple (XRP) and Stellar Lumens (XLM), are likely to face stiff competition from CBDCs. 

More Ripple news

Shiba Inu price stabilizes as SHIB bulls prepare for 20% take-off

Shiba Inu price saw a massive uptrend on September 16 but was soon undone in the next couple of days as it approached a stable support floor. Investors can expect SHIB to launch here, retesting crucial resistance barriers.

More Shiba Inu News

Cardano price eyes 30% breakout if ADA bulls can overcome this strong hurdle

Cardano price is in a suspended state after its recent breakout from the bullish pattern. If ADA finds a launching pad, there is a high chance a new uptrend begins. Interestingly, there is a confluence of support, indicating a bullish outlook.

More Cardano News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP