Bitcoin Is Losing Ground At The Start Of The Week
Bitcoin managed to get below the 50 EMA at $45,200 and is trying to settle below the next support level which is located at $44,000. This is an important moment for the whole crypto market as Bitcoin will have a great chance to develop additional downside momentum in case it manages to settle below the support at $44,000.
Not surprisingly, other cryptocurrencies are under pressure. Ethereum is currently trying to settle below $3,200. Dogecoin is testing the support at $0.2350, while XRP is trying to settle below the 50 EMA near $1.05.
Bitcoin Dominance, which measures the market capitalization of Bitcoin as a percentage of total crypto market capitalization, has moved away from recent lows near 40%, but this move did not help Bitcoin as the whole crypto market is under strong pressure.
Bitcoin declined below the 50 EMA at $45,200 and is testing the next support level at $44,000. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
If Bitcoin manages to settle below the support at $44,000, it will head towards the next support which is located near the recent lows at $42,600. A successful test of this support level will open the way to the test of the support at $41,300. In case Bitcoin declines below this level, it will move towards the psychologically important support level at $40,000.
On the upside, the previous support at the 50 EMA at $45,200 will serve as the first resistance level for Bitcoin. If Bitcoin manages to get back above this level, it will move towards the next resistance at $46,000.
A move above $46,000 will open the way to the test of the resistance at the 20 EMA at $47,000. In case Bitcoin manages to settle above the 20 EMA, it will continue its rebound and head towards the next resistance level which is located at $48,000.
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This article was originally posted on FX Empire