TL;DR Breakdown
- Following the new ATH made by Bitcoin on Sunday, the price drops further below $45,000.
- Cointelegraph analyst reveals that the dip is nothing compared to the previous ones.
Bitcoin price crashes further
The moment Bitcoin price started taking a dip on Monday after it had set a new record high, analysts predicted some three key potential support zones at $55,000, $52,365 and $50,800. However, it broke through all the support levels to later settle around $47,400 in about an hour.
The price drop was about $7,000 and it resulted in a more than $70B loss in the crypto’s market cap. The event was linked to a comment by the U.S. Treasury after claiming repeatedly that Bitcoin is inefficient and often used as a front for criminal activities.
Some hours after the drop, Bitcoin price managed to reclaim some of its losses the price rose to about $53,000. However, Bitcoin has again taken a huge dip earlier today when the bears drove the price to about $45,000.
Bitcoin price eyes a new resistance level
In retrospect, analysts reported that the flagship cryptocurrency has not reached this low in more than a week. However, price is again gaining more momentum with the $47,000 acting as a new support level.
As a result of the extreme volatility, no one is certain where the price will move next. However, based on analysis, there appears to be no support level below $46,500. Analysts have remained unperturbed by the recent dips claiming that it is nothing compared to the others they have experienced.
Cointelegraph analyst, Michael van de Poppe noted that this time of the year has not always been the best for the crypto markets. He added that if the price should dip any further, it means that Bitcoin is in for historical behaviour. He also identified potential reversal zones at $48,000 and $51,000.
