Bitcoin dropped dramatically on September 7, reaching a low of $42,843, representing a 19 percent drop in one day. It has since bounced back significantly, forming a long lower wick. However, indicators are pointing to a possible trend reversal despite the significant bounce.
The price variations occurred after the digital asset had a flash crash, when it fell below $43,000. The aforementioned bitcoin price drop occurred on the same day that El Salvador adopted bitcoin as legal tender.
Following the price swings, a number of technical analyses are provided, giving light on the important levels of support and resistance that bitcoin would face next. The first thing to notice is that, despite the fact that pricing has been extremely volatile in recent days, the drop was to a known level.
BTC Price Momentum
Bitcoin broke out of the $51,200 resistance area on September 5. Then, two days later, it reached a high of $52,620. BTC, on the other hand, plummeted to a low of $42,483 on September 8. Despite the decline, BTC bounced and reached a high of $47,340, forming a long lower wick.
Technical signs are turning bearish, despite the fact that BTC has recovered. After falling for a long time, the MACD has nearly crossed into negative territory. In addition, the RSI has fallen below 50. This is critical since the cross above 50 on July 21 indicated the start of the upward trend.
Bitcoin at the time of writing is standing at the price of $46,184.09 with the change of 0.10%. The trading volume of the coin in the last 24 hours is $34,656,227,717 along with market cap of $869,448,726,102.
Between $47,850 and $49,050 are projected to be the main resistance levels. The price of BTC is expected to hit these levels as long as BTC continues to rise.