Investing.com – The price of Bitcoin dropped below $48,000 on Wednesday as the recent rally continues to run out of steam following the breach of $50,000 earlier this week.
The downside stemmed after Bitcoin found resistance ahead of the key $51,000 level, which is also the 61.8% Fibonacci retracement level from the all-time high in April to the July low. Since hitting a high of $50,500 on Monday, the world’s largest cryptocurrency has now dropped on consecutive days to trade at its lowest level since 20th August.
If Bitcoin continues to move lower, the next key level of support is the 50% Fib level from the April high to July low around $46,800.
Below that and the next support level is the 200-day moving average which comes in near $46,000.
A move below there and $42,500 looks like major support, having acted as previous resistance on the move higher and as it represents the 38.2% Fib level from the April high to July low.
For Bitcoin to resume its uptrend, $50,000 will need to be the first major resistance level to overcome before $51,000. A move above that level could then open the door to Bitcoin retesting its all-time high from April near $65,000.
Other major cryptocurrencies have also come under selling pressure on Wednesday.
Cardano, which is now the world’s third largest cryptocurrency, has fallen over 5% in the last 24 hours as the recent rally takes a breather.
The cryptocurrency has risen around 180% in the last month ahead of the Alonzo Purple upgrade on September 12th. The upgrade will bring smart contracts and allow decentralised finance applications on the Cardano network.
Ethereum has shown similar price action, having fallen around 5% in the last 24 hour period.
This comes despite the non-fungible token (NFT) market taking off in recent days, amid increased corporate interest.
Payments company Visa (NYSE:V) confirmed on Monday it had paid $150,000 for an NFT named CryptoPunk 7610.
Budweiser has also entered the NFT sphere, changing the display picture on its Twitter profile to a rocket ship created by NFT “artist” Tom Sachs. The beer brand, owned by Anheuser Busch Inbev (NYSE:BUD), reportedly paid eight Ether for the picture and also bought the Beer.eth domain name for 30 Ether, or approximately $100,000.
Source: Cryptocurrency - investing.com
