In A Hangover, Bitcoin Bulls Break Below $48K

Bitcoin’s price dropped to $48k Wednesday after it crossed $50,000 earlier in the week.

Cryptocurrency prices recently began to slide after Bitcoin found resistance ahead of the $51k level, which also is the 61.8% Fibonacci retracement dividing the April all-time high from the July low.

Bitcoin, the largest cryptocurrency trading platform in the world, has fallen to its lowest level since August 20th. It was at $50.5k Monday when it reached its highest point.

If the crypto-asset continues to fall, the 50% Fib level at $46,800 will be crucial. It is close to $46k, and it is lower than the 200-day moving mean.

This has been the previous resistance, and the 38.2% Fib level that was between the April high & July low. A move below this and $42,500 seems like significant support.

Glassnode, an analytics firm, has data that shows that there was a substantial net inflow of approximately 140k Bitcoin to exchanges during May. However, July saw 110k Bitcoin in net withdrawals. This trend is largely reversed. Throughout August, exchange balances have stagnated at 2.5 million Bitcoin (13% circulating supply).

Many traders are anticipating a bullish turn in the near future on shorter time frames if relative strength index (RSI), can break out from ‘oversold” territory. The reliable upside was due to an increase in volume.

Bitcoin must surpass $50k in order to regain its upward trend. Bitcoin could reach its April high of $65k if it moves above this level.

Cardano, which is the third largest crypto-asset in the world, fell over 5% during the last 24 hours, despite recent rallies.

The cryptocurrency’s price has increased by around 180% in the last month, prior to the Alonzo Purple upgrade on September 12, 2018. Cardano will introduce smart contracts to allow for decentralized finance applications.