The BITCOIN manages to stop its fall in the 8/8 area of Murray located around 50,000, also a psychological level, now seeking a recovery after losing 10% of its value in 24 hours, and is trading in the area of 53,116 level from the 200 EMA on 4-hour charts.
Earlier this week, the president of the FED, Jerome Powell, assured that cryptocurrencies are very volatile and therefore are not really useful as a store of value and are not backed by anything. They are more of an asset for speculation.
Yesterday, after the warnings about a financial bubble behind its value multiplied in the mouth of analysts, it stood at around 50,400, a collapse of 12.5% in the last week.
The founder of the cryptocurrency trading company BTCC, Bobby Lee, told the US network CNBC that Bitcoin could reach $300,000, before the so-called bubble bursts. And beware, people should be aware that it could fall between 80% and 90% of its value from its maximum value.
On the technical level, we note that the BTC is about to overcome the downward pressure, once again being above 54,000, a recovery is expected to face the resistance of 56,250 and 59,950.
On the contrary, we noticed a formation of a bearish wedge, if confirmed, it should try to break the support of 50,000, there is the 8/8 of Murray, with targets at 43,750, the 7/8 area of Murray and strong support.
We recommend selling below the 200 EMA with targets at the 50,000 psychological level.
Support And Resistance Levels For March 26 - 29, 2021
Resistance (1) $53,981
Resistance (2) $55,504
Resistance (3) $58,226
Support (1) $52,132
Support (2) $50,567
Support (3) $48,760
