The bitcoin price is still on a downward trend but there was a shocking occurrence in the market: NVIDIA, one of the largest companies in the U.S., suffered the largest loss in a day in history.
The company recorded the highest-value depreciation of 95% in less than 24 hours, putting their losses at about $280 billion. The broad-based losses did not only leave the stock markets alert but influenced Bitcoin and other e-assets which saw them drop downwards.
According to analyst Josh of Crypto World, Bitcoin is now testing an important support zone. The SuperTrend indicator continues to indicate the bearish movement. The two-day chart also depicts lower highs and lower lows so far.
He said that Bitcoin is currently encountering a crucial area of support between $56,000 and $57,000, where it’s likely to find some buying interest, possibly stabilizing the price in the short term. However, this support might only hold for a day or two, especially if other bearish factors, like the historic stock market collapse, come into play.
The Bitcoin chart still shows a larger bearish trend, with resistance levels near $60,000 proving to be unbreakable. Any potential upside movements are likely to face strong resistance at these levels, meaning that even short-term bullish action could struggle to break through.
Bitcoin has support today in a range between $56000 and $57000 th and it is actively testing this range now. In case of retest below this range the next levels of support lie in the ranges of $54,000 and $51,000 to $53,000.
The analyst said that despite what happens in the short term on the small time frames, the larger time frames are still bearish and right now the price is running into this critical area of support. At the time of writing, Bitcoin is down by more than four percent and is trading at $56,500 levels.
Also Read: Crypto Crash: Why Crypto Whales are Selling Bitcoin, Ethereum, and XRP?
