The Bitcoin price has steamed off its strong rally. The BTC coin is trading 4% lower at $47,026. Its total market capitalization has slipped more than 1% to $884 billion. However, its total volume traded in the last 24 hours has jumped 12.09% to $36.1 billion.
The Bitcoin price has been in the limelight since its rally over the weekend. The crypto leader was hovering over the psychological level at $50,000 on Sunday before pulling back.
Bitcoin hit an all-time high of over $64,000 in April but sold off heavily later in May, June, and July. Analysts linked BTC’s selloff to the renewed regulatory scrutiny from Chinese authorities, who forced the shutdown of Bitcoin mining operations and moving them elsewhere.
However, the digital asset has jumped more than 60% since mid-July. The slump in the Bitcoin price has dampened the rally in the overall crypto market. Altcoins such as Ethereum, Cardano, Dogecoin, and XRP have also been in the red.
However, last week, Coinbase announced that it would buy $500 million in crypto on its balance sheet and distribute 10% of profits into a crypto asset’s portfolio. This announcement boosted the crypto market.
PayPal’s announcement on Monday also boosted the gains in the overall crypto market. The US online payments giant stated that it would let British customers buy, hold, and sell digital assets, starting this week.
Analysts seem quite optimistic about the overall performance in the crypto market. According to them, the growing adoption of cryptocurrencies will boost the crypto rally.
Bitcoin Price Analysis
According to the daily chart, the Bitcoin price has been trading below the $50,000 level since the start of the week. The coin is trading 28% below its highest level this year. It hit an intraday high of $49,352.
The coin is trading above the 50 and 100-day moving averages. It has also found support along the 200 DMA.
As such, the BTC price is likely to retrace further before pulling back to the $50k level. However, a move past the support at $42,640 will invalidate this view.