As of the time of writing btc is trading at the price of $50850. This price culminates after yesterdays plunge which was alleged to result from Elon Musk's negative sentiment on twitter.
The bitcoin price had reached its all time high of $58354 on monday trading. The asset once worth as low as $0.0003 has made crypto millionaires and is recently taking the financial sector by storm. However, it has a history of ferrocious volatility due to its speculative nature.
Elon Musks recent move to invest Tesla Inc's $1.5 b in bitcoin has contributed to an upward acceleration as it signals more adoption and scarcity since a big firm would typically hold a security asset for a long time. Another recent move that has contributed to a price rally is the announcement by paypal, the international payments giant, of finally allowing its users to buy and sell crypto right from their account dashboards. At the time paypal made the announcement btc was oscillating between $21000 and $25000 and rose to levels of above $30000 the same week. Then came the Tesla move and now here we are. Bitcoin yesterday plunged from $58000 to lows of sub-$48000. This bearish pressure results from part of the market believing the asset is overpriced at the current price. If the bearish trend presses on, bitcoin could fall all the way to $37000 where string support exists backed by the fact that btc would be trading around that price had the Tesla news not catalyzed its upward trajectory.
The next support level exists at $42000 since the bulls might see a big correction as an opportunity and may have it if the tends towards the neighbourhood of $40000.
Bitcoin and most altcoins are showing signs o recovery today but only time will tell if they'll recover the upward movement or it could be a temporary comeback.
