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Date:
26th Mar 2021
Author:
Dalmas Ngetich, for CryptoAltum News Team

Bitcoin Shrinks to $50k, Strong Hands Buying BTC

The Bitcoin price, on Mar 25, cratered to $50k, losing double digits just when leading analysts are convinced Bitcoin is now part of the 'big leagues'. The BTC meltdown is surprisingly at the back of solid supportive fundamentals, including Goldman Sachs toeing the line and filing to offer ETF-linked notes that may have BTC exposure and are dependent on Ark Innovation Bitcoin ETF performance.


Details: 

Crypto bears may be taking charge, but an array of fundamentals are incredibly supportive of the digital gold. A vital region of support for the BTC/USD is at around $42k—flashing with January 2021 highs as per price charts. Therefore, $50k is more of psychological support being a round number. Accordingly, traders are watching if bears will succeed in pushing prices below this mark. If successful, the odds of BTC slumping to $40k would be high even if Tesla now supports BTC as a means of payment.


Impact on the BTC Price: 

Neutral. A top-down analysis of BTC price action points to buyers—judging from exchange outflows and high BTC's liquidity of above $1 trillion. On the other hand, $50k is a vital reaction point for Bitcoin and crypto. Aforementioned, sharp losses could technically spark a heavier correction towards $40k.


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