Bitcoin under the microscope after overnight plunge

Bitcoin holds just above $50,000 after a fall to $46,000 overnight

Bitcoin D1 13-05

Elon Musk certainly didn’t make many friends with the announcement yesterday that caused Bitcoin to plunge from $54,800 to $46,000 at the lows.

The trade in Bitcoin has been one that errs more towards being psychological more than anything else and that is often reflected in the charts as well.

Since breaking the bullish cycle of higher lows and higher highs last month, there seems to be some exhaustion in price action in trying to chase the highs again.

The plunge overnight sees a drop below the 100-day moving average (red line) and puts the focus on support from the late April lows near $47,000. A firm break below that is likely to see the downside accelerate towards $44,000 next.
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