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August 9, 2022
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Bitcoin drops to $ 56,000 due to weakening turnover

Since Bitcoin has been hovering around the $ 60,000 mark for a long time, the bulls have not seen a major breakthrough in this important pressure level. Investors are taking an attitude of waiting to see where Bitcoin is going.

Bitcoin (BTC) has fallen 2.44% in the last 24 hours and 4.37% over a seven-day period. At today’s lowest value, Bitcoin was trading at around $ 55,441.93.

Bitcoin’s price is recovering slightly. At the time of this writing, Bitcoin was trading at $ 56,498.81.

Bitcoin spot cash turnover has been in a low-frequency trading stage since April 2021, which has caused Bitcoin to drop to almost $ 56,000. As a result, the Bitcoin spot market is in a weak state.

Bitcoin (BTC) price analysis

Bitcoin drops to $ 56,000 due to weakening turnover 22

Bitcoin (BTC) has failed to break the $ 60,000 rigid resistance, attracting many short-term traders to sell at a profit. This pulled the price down from today’s $ 56,771 20-day exponential moving average (20-EMA).

Bitcoin, the largest cryptocurrency by market cap, is looking for price support around a 50-day exponential moving average (50-EMA) of $ 53,275 and resistance at around $ 60,000.

As the price of Bitcoin goes up, more funds are needed to maintain that level. Therefore, if the inflow of institutional funds does not increase in the coming days, Bitcoin (BTC) may undergo a major adjustment and it is very likely to test the 50-EMA support level.

If bears manage to keep the price below the 50-day exponential moving average, this will trigger more intense sales orders. The next level of support is $ 53,275 and then $ 51,326.

The flat moving average and the MACD index formed a bearish cross, showing that bears are currently dominating the market.

If more investors buy in the fall, it could serve to push Bitcoin’s price above 20-EMA. This will cause Bitcoin to resume an upward trend as it targets the psychological level of 60K. If 60K is breached, the bulls will start targeting $ 70,000.

Source: BlockchainNews

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