Bitcoin Crashes Following Failure to Hold Above $50K

Azeez Mustapha
26 August 2021 | Updated: 26 August 2021

The bearish market bias in the cryptocurrency market continues into the second day as Bitcoin (BTC) falls below the $47k line. As expected, most altcoins have posted heavy losses, causing the crypto market valuation to shed over $100 billion in a day.

Just two days ago, the benchmark cryptocurrency traded at multi-month highs after peaking at $50,500 for the first time since mid-may.

However, it lacked the bullish fortitude to continue on its journey upwards and headed south. The bearish momentum accelerated below $49,500.

The primary cryptocurrency initially recorded a $1,000 bounce within a few hours, but this attempt got trampled upon by bears, who have now sent prices to a $46,555 intraday low.

The recent increased volatility in the past 24 hours caused significant disruption for leveraged traders. According to Bybt, over $450 million in leveraged long positions got liquidated. The highest single liquidation occurred on Bybit, with leveraged BTC traders losing close to $5 million.

The altcoin space is also in a grim state this morning with Ethereum (ETH), Cardano (ADA), Binance Coin (BNB), Ripple (XRP), Dogecoin (DOGE), Polkadot (DOT), and Solana (SOL) all down with -2.4%, -6.2%. -1.5%, -4.3%, -6.5%, -4%, and -3.9%, respectively.

Key Bitcoin Levels to Watch — August 26

Bitcoin has fallen into a depressed momentum following its recent dip and risks falling to the $45k region if bulls remain suppressed. The price currently holds around the $47k level as bulls struggle to regain traction.

BTCUSD – 4-Hour Chart

Failure to climb back above the $48k level, which coincides with our 4-hour 50 SMA level, in the coming hours could trigger a bearish continuation for the flagship cryptocurrency. That said, traders would likely stay on the side and monitor the near-term price action before placing any aggressive bets.

Meanwhile, our resistance levels are at $48,300, $49,500, and $50,000, and our key support levels are at $46,000, $45,000, and $44,000.

Total Market Capitalization: $2.01 trillion

Bitcoin Market Capitalization: $884.6 billion

Bitcoin Dominance: 44%

Market Rank: #1

 

You can purchase crypto coins here: Buy Tokens

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!
Azeez Mustapha

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.