As BTC Price Drops To $50K, Wiping Out A Billion Dollars, Will It Drop To $45K?
The global financial markets are facing a bearish start as Bitcoin’s price drops to $50,000, wiping out a billion dollars in market value. Ethereum is also down to $2,250, adding to the overall market turmoil.
The selling pressure has led to a surge in long liquidations, shaking out leveraged bullish positions. The fear, uncertainty, and doubt (FUD) surrounding the market are warning of a potential bearish extension this week. The big question on everyone’s mind is whether Bitcoin will continue its downward trend and drop to $45,000, or if a recovery is possible.
Bitcoin’s price performance has been hit hard by the recent market conditions, with a 15% loss in market valuation today. Currently trading at $50,103, Bitcoin has broken under a crucial support trendline with a bearish engulfing candle, signaling a selling opportunity.
The bearish candle has undermined the bullish flag pattern and the sideways range of months, indicating a bearish outcome. The crypto market has lost $607 million worth of bullish positions today, with total liquidations hitting the billion-dollar mark, resulting in 90% of bullish positions getting liquidated.
Technical indicators such as the Relative Strength Index (RSI) and Exponential Moving Averages (EMA) reflect the massive downtrend in Bitcoin’s price, with the daily RSI dropping below the oversold boundary line and the breakdown of the 200-day EMA leading to a bearish turnaround in the 50-day and 100-day EMAs.
The question on everyone’s mind is whether Bitcoin will hit $45,000 and if the dream of reaching $100,000 is still possible. With the bears in control and Bitcoin failing to hold the bullish flag pattern, the next support levels at $47,000 and $43,000 are likely to be tested. A global market crash could further amplify the bearish trend.
While the current market sentiment is filled with fear and uncertainty, a potential rally in September could be the long-awaited bullish signal if the recession is avoided. The future of Bitcoin’s price remains uncertain, but investors are bracing themselves for more volatility in the coming days.
