Yesterday, the cryptocurrency market faced one of the biggest drops in recent memory. All coins have turned red.
Market volatility surged yesterday, and the price of Bitcoin (BTC) dropped nearly 19% throughout the day. The bears, not waiting for the retest of the target level of $53,400, pushed the pair back from the monthly high at $52,956 to the daily low around $42,900.
It should be noted that, in the afternoon, the Bitcoin price bounced to the $47,745 level. Today, it is likely to consolidate in a sideways range with support around the $46,000 mark.
On the daily time frame, the indicator lines left the overbought zone and are now in the neutral zone. The likelihood of the continued decline and recovery of the market is approximately the same. Therefore, if the bears push through the support of $46,000 today, the pair may test the $42,447 level.
If the market manages to recover above the $47,745 resistance, then one can expect a return above $50,000.
On the weekly time frame, Bitcoin (BTC) needs to close the body of the candle above the $46,560 mark. If buyers can manage to do that, there is a high possibility of seeing a retest of the $50,000 mark.
Bitcoin is trading at $46,200 at press time.