Brazilian Bitcoin analyst Tasso Lago sees the new downturn in the market as a warning to anyone interested in entering.
That’s because Bitcoin struggles in recent days to maintain the US$ 50,000 mark in the quotation, but it hasn’t been an easy task. This Thursday (9), for example, the Bitcoin quote operates at a 4% drop in the last 24 hours, traded at US$ 48,290.00.
In Brazil, even with the rise of the Dollar at R$ 5.59, the price of Bitcoin drops 3.30%, quoted at R$ 272 thousand in the main brokers in the Brazilian cryptocurrency market.
It is worth remembering that the recent November and December declines in Bitcoin price affected its market dominance compared to stablecoins, mainly Tether, USD Coin and Binance USD, the biggest in the market.
Bitcoin dominance drops to 40%, after trading at 43% last month, while stablecoins registered a rise, with USDT moving from 2.55% to 3.27%, USDC from 1.19% to 1.74 % and BUSD from 3.63% to 4.26%. This flight from Bitcoin to stable currencies could be a sign that traders are fearful of market volatility and seeking refuge in Digital Dollars.
But what does the Brazilian analyst say about the fall of Bitcoin?
“Another day of blood at the market! Bitcoin is failing to sustain itself above $50,000 dollars and is under selling pressure (even if not much volume) every time it tries to outperform the region there between $50,000-$52,000 dollars.
On the 4-hour chart, we have already lost the averages again and at the moment it is the 20-period EMA (red line) that is impacting bitcoin, a kind of resistance. On the daily chart, it would be ideal not to close the day below $50,200 dollars, as this would return us to the dangerous region of indecision, with the price between the 200-period averages (orange line and green line).
For now, stressing the calm again. We are still not seeing buyer volume in the market, so it is not wise to venture out. Many altcoins are suffering from bitcoin as well. Caution, because we can still go back to testing the $42,000 dollars.
Always manage risk properly, never put all your capital into a single trade or a single cryptocurrency.
Our most important brackets are at $46,554 dollars and $42,600 dollars. Our resistance is now at $52,800 dollars.
Bearing in mind that the cryptocurrency market is an extremely volatile market, this is just a technical opinion.”