Bitcoin fell dramatically on September 7, hitting a low of $ 42,843, a decline of 19 percent in one day. It has since recovered significantly, forming a long lower wick. However, despite the significant upturn, the indicators point to a possible trend reversal.
The price swings came after the digital asset had a flash crash when it fell below $ 43,000. The Bitcoin price drop mentioned above happened on the same day that El Salvador introduced Bitcoin as legal tender.
After the price swings, a series of technical analysis is provided that sheds light on the key levels of support and resistance Bitcoin would face next. The first thing that stands out is that despite the fact that prices have been extremely volatile over the past few days, the decline fell to known levels.
BTC price dynamics
Bitcoin broke out of the $ 51,200 resistance area on September 5. Then, two days later, it hit a high of $ 52,620. BTC, on the other hand, plunged to a low of $ 42,483 on September 8th. Despite the decline, BTC rebounded to hit a high of $ 47,340, forming a long lower wick.
The technical signs are on the decline even though BTC has rallied. After falling for a long time, the MACD has almost entered negative territory. Additionally, the RSI has fallen below 50. This is critical as the cross above 50 on July 21st marked the start of the uptrend.
Bitcoin is priced at $ 46,184.09 at the time of writing, up 0.10%. The trading volume of the coin over the past 24 hours is $ 34,656,227,717 along with a market capitalization of $ 869,448,726,102.
Main resistance levels are projected to be between $ 47,850 and $ 49,050. The price of BTC is expected to reach these levels as long as BTC continues to rise.