After Bitcoin took a huge dip last week, it has managed to reclaim some of its lost gains. However, it appears that the price is finding it difficult to move upwards, again. Similarly, the altcoin market has suffered the same fate after most coins took a dip.
This dip gives the impression that there may be a high correlation between Bitcoin and the traditional markets. This is because Wall Street also took on some significant losses yesterday. The NASDAQ 100 is currently down 2.88%, the S$P 500 has dropped by 1.31%, while the NASDAQ Composite has experienced a 2.7% loss.
For some days, Bitcoin has found it difficult to sustain its move above the $50K level. On Tuesday, the prices formed a little spike above $50,000. Yesterday, the prices appeared to have broken past this benchmark price, but couldn’t follow through with the move.
The intraday high made by Bitcoin yesterday is the peak it has reached in the last 10 days. Right now, it appears to be a battle between the bears and bulls. Since Bitcoin hit the intraday high of $53,000 yesterday, it has suffered a 7.5% loss.
Altcoins Suffer as Bitcoin Price drops
At the moment, Bitcoin is trading around $49,000 according to data from Coinmarketcap. The $50,000 price mark is the first obstacle that the prices have to overcome to keep the digital gold rolling upward. Based on the signals from technical indicators, the next resistance lines for prices will be at $52,000, $53,150 and $54,000.
If prices should take the opposite route, the support levels there will be at $48,000, $47,200 and $46,000. The total market cap of all cryptocurrencies is struggling to remain afloat as well.
In the last few moments of the leading crypto asset rally, the altcoin market made some gains too. However, in the last 24 hours, most altcoins have either experienced difficulty moving up or have seen their price corrected. Following Ethereum’s spike to $1600, it has lost about $40. Cardano’s ADA has also dropped by 3%.