Bitcoin Falls Below $50,000
Bitcoin unexpectedly fell 12% in the last 24 hours, and at one point its price was $48,600.
Over the past 24 hours, the price of Bitcoin fell 12% to $48,600, the first time it has fallen since February 2024. The price then rebounded to $52,500 at the time of writing. Bitcoin has fallen 24% in a week. The sharp drop caused liquidations across the entire cryptocurrency market totaling $1 billion.
Bitcoin's fall was influenced by a combination of factors. For example, uncertainty about the winner of the US election. Donald Trump was noticeably in the lead, gaining support from the cryptocurrency community. However, after Kamala Harris entered the race, voters are lost in doubt. In some states, Harris and Trump are running neck and neck.
Market participants are uncertain about the outcome of the US elections. In addition, the markets are also under pressure from tensions in the Middle East, which threaten to escalate into a larger conflict.
Bitcoin was also sensitive to fresh macroeconomic data, which showed a rise in unemployment. Meanwhile, analysts from Goldman Sachs are confident that the probability of recession in the United States in the coming year is 25%.
At the moment, Bitcoin is struggling to overcome the $55,000 resistance zone. The first key resistance is around $56,800. If the bulls manage to break above in the coming session, Bitcoin could rise to $58,000, where another key resistance is located. Further gains could take Bitcoin to the $60,000 mark in the near term.
On the negative side, if Bitcoin fails to overcome the first key resistance, it would continue to fall to $52,500 and $50,000.
