Bitcoin struggles to climb above the $48,000 resistance as the coin settles in a tight range between $47,000 and $48,000
Bitcoin is struggling to climb above the $48,000 resistance as the coin settles in a tight range between $47,000 and $48,000, after hitting a new 10-day high yesterday, the coin calmed around the $48,000 mark.
The past several days have been going well for the primary cryptocurrency which rose and fell by a few thousand dollars on Monday, after bottoming at $43,300, the bulls regained control of the market and started to gradually push the asset higher.
Bitcoin is recovering again
As such, Bitcoin started to recover some of its lost losses and jumped above $48,000 on Thursday, continuing to climb until it reached an intraday high of $48,500.
This became the highest price line since last week's massive crash, as it fell digital currency Leading by $10,000 per day.
After this multi-day peak, Bitcoin rebounded a bit and fell to $47,000 earlier today, though, and it has managed to reclaim nearly $1,000 and is standing shy of the $48,000 level again.
Over the past seven days, the cryptocurrency market cap rose slightly by 0.7%, showing a decline since mid-Thursday, ending the recovery in the cryptocurrency market after the collapse it witnessed early last week.
The pressures are still there
As Bitcoin failed to break above $48,000, increasing pressure on the benchmark cryptocurrency's price at current levels will confirm the downside, as sharp selling may start from increasingly lower levels.
Last April, the value of the digital currency was close to $60,000, in May, the speculators gave up due to their failure to push the price above $55,000, and this September, the coin could not even stay above $50,000 for a long time.
Technical experts say that short-term pressures on Bitcoin are represented by quarterly futures contracts and options expiration, bears are fiercely advocating to keep levels near $ 50 thousand, so short-term traders should focus on the $ 45 thousand level, and this decline will lead In turn, Bitcoin capitulation which can quickly spread throughout the entire crypto market.
However, pressure on the leading cryptocurrency will not be limited to technical or speculative factors alone, as the S&P 500 warned El Salvador of direct negative effects on its credit rating, after its decision last week to officially make Bitcoin a payment instrument alongside the US dollar.
Standard & Poor's said such action could deprive the country of IMF aid programs and increase vulnerabilities in its banking and financial systems. News such news exacerbates the perception of digital currencies among institutional investors who have been the main driving force behind bitcoin this year.
Professional technical and economic analyst in global financial markets since 2004, holder of an MBA from the American University in Cairo. He works as an economic writer and technical analyst for many international financial companies. He writes daily economic and technical analyzes for many Arabic and English websites specialized in the field of stock exchanges and financial markets.
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