Bitcoin price analysis: Calm after a devastating storm

The last 24 hours have been nothing by sorrow for the cryptocurrency investors. After about two months of stability, the market suffered one of the worst selloffs this year. CoinMarketCap shows that $26 billion has been erased from the market in less than 24 hours.

Bitcoin was the worst hit. Not only did it break below $6,000, it explored lows towards $5,300 forming new yearly lows. The digital asset plunged over 11% on Wednesday evening (GNT). The devastating drop had as a surprise to many dragging the entire market to the bottom with it. The fourth largest virtual currency, Bitcoin was in tandem with Bitcoin price plummeting at least 19% on the day. Besides, BCH has plunged over 34% in the last 7 days.

Bitcoin price analysis

As mentioned, Bitcoin failed to find support at $6,000. Neither did the former support at $5,800 help to stop the slide. The fall found bearing around $5,500 but further break down had it test $5,300. There was a rebound with the buyers putting in their best effort to dust their shows and pushed the price above $5,600. However, Bitcoin is currently locked within a narrow range with a short-term support at $5,500.

The immediate supply zone at $5,700 will limit the correction, besides both the 50 SMA and the 100 SMA will hinder growth at $5,742 and $6,000 respectively. The calm after the storm is bound to continue for a short while with the MACD ranging at 0.0 and the RSI sideways movement at 57.14.

CNBC’s Brain Kelly believes that Bitcoin will not stay down for long, read more on the story here.