Today, bitcoin dropped by a sharp 4.8% and reached as low as $54,650. However, the cryptocurrency is back trading at around $56,000 as it found solid support at the 20-day MA which allowed it to rebound.
A quick recap: Bitcoin’s price decreased to as low as $47,000 (.5 Fib) over the past two weeks but it has since recovered a lot of the losses. As can be seen on the short-term charts, BTC was trading inside an ascending price channel over the week as it reached the February 2021 highs at $58,355 by the beginning of May. Yesterday, the price reached $59,000 but the momentum started to fade and bitcoin headed lower.
Today, the sharp 4.6% price drop caused bitcoin to fall through the lower boundary of the ascending price channel. It continued beneath $56,000 until finding support at $55,400, which stalled the decline. There is also a parallel trend line to the ascending price channel and the 20-day MA here that bolstered the support.
BTC Price Support and Resistance Levels to Watch
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Źródło: https://cryptopotato.com/bitcoin-price-analysis-btc-struggles-at-a-critical-support-level/
