Even as El Salvador passed Bitcoin as legal tender, the token dipped from $52K yesterday. The plunge saw BTC fall from nearly $53K to $43,119. However, it is now climbing back, but it’s still unclear if the rally will continue or more support levels will be tested.
BTC after the fall, went on the next day stabilising and retesting the crucial 200-day moving average at $46k, following a roughly 20% drop in price.
BTC was able to maintain the level for the daily close, which is a positive indicator. In the short term, it’s critical to keep holding $46k, finish long liquidations, and begin a comeback to retake $47.2, the green zone’s bottom.
What next for Bitcoin?
Rekt Capital, a trader and analyst, saw an ongoing retest of Bitcoin’s 50-day exponential moving average (EMA) as a potential game-changer with expectations biassed to the upside.
Also, while the event’s lows of $42,800 have not been retested, popular trader Crypto Ed believes a breakdown is not out of the question. In a recent tweet, he presented the situation alongside an updated chart.
“Looks like a bullish pennant to me…Impulsive bounce followed by consolidation,”
Adding to the thesis is analyst Justin Bennet.
In a recent tweet he says, he expects BTC to retest $40,000 before starting a rally back up.
“I doubt the pullback is over. Everything closed below key support on Tuesday. Unless we see markets close back above those levels, I’m thinking BTC revisits $40,000.”
He goes on to sat, It’s a weekly support level that has yet to be tested. There’s a lot of [Fibonacci] confluence to back it up.