After breaching $50,000 earlier this week, the price of Bitcoin dropped below $48k on Wednesday.
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.
With the world’s largest cryptocurrency trading at its lowest level since 20th August, Bitcoin has dropped on consecutive days since hitting a high of $50.5k on Monday.
The 50% Fib level around $46,800 will be important if the pioneer crypto-asset continues to move lower. It comes in near $46k and is below that 200-day moving average.
Having acted as previous resistance and as the 38.2% Fib level between the April high and July low, a move below that and $42,500 looks like significant support.
Data collated from Glassnode, a crypto analytic firm reveal that although there was a significant net inflow of around 140k Bitcoin to exchanges in May, July saw around 110k Bitcoin in net outflows, largely reversing that trend, throughout August, exchange balances have stalled at around 2.5 million Bitcoin (~13% of circulating supply).
Meanwhile, a number of traders anticipate a potential bullish turn on lower time frames if the relative strength index (RSI) can break out of “oversold” territory. The increase in volume was a contributing factor to the reliable upside.
Bitcoin will have to overcome $50k before $51k can resume its uptrend. If Bitcoin moves above this level, it could test its all-time high from April near $65k again.
With recent rallies taking a breather, the third-largest crypto-assets in the world, Cardano, has fallen over 5% in the past 24 hours.
Prior to September 12th’s Alonzo Purple upgrade, the cryptocurrency has risen around 180% over the past month. Smart contracts will be introduced to the Cardano network, allowing for decentralized finance applications.