In the early afternoon yesterday, Bitcoin (BTC) appeared to have finally broken through the stubborn $5,300-$5,400 resistance level.
Bitcoin’s (BTC) price rose as high as $5,440 during a short squeeze, but the euphoria was short-lived. Only two hours later, Bitcoin (BTC) dropped back to $5,300. Overnight, bearish sentiment intensified, with Bitcoin (BTC) dropping to $5,200 by midnight and below $5,100 by 6 a.m. Eastern time.
Just after 7 a.m., Bitcoin (BTC) dropped slightly below $5,000 before stabilizing, indicating that there is support at $5,000. The Bitstamp trading book depth chart suggests there is strong support at $4,800, so if the bearish trading activity deepens, Bitcoin (BTC) could go as low as $4,800.