Bitcoin May Continue to Face Headwind after Plunging to $53,500

Bitcoin, the world's largest cryptocurrency, plummeted to as low as $53,500 at 8:00 UTC on May 11. Currently, its price has relatively rebounded. At the time of writing, Bitcoin bulls are not strong enough to defend the $55,000 support level, with BTC trading at $54,727.

According to Coinmarketcap, Bitcoin (BTC) dropped by 6.48% within 24 hours, as a massive sell-off occurred. Simultaneously, other mainstream cryptocurrencies also suffered losses. After breaking through the $4,000 mark and hitting an all-time high of $4,209, Ethereum quickly fell back below $4,000, even dropping to $3,665 momentarily.

Ethereum is currently down by as much as 8%, trading around $3,800. Dogecoin on its end dropped 16.87% in 24 hours and is trading at $0.4525.

The three major indexes of the US stock market also suffered major losses yesterday. The soaring commodity prices have triggered concerns about global inflationary pressures in the market. Nasdaq Composite index fell by 2.55%, led by a plunge in Tesla, down by 6.44%.

The U.S. S&P 500 lost 1.04% Monday, while the Dow Jones Industrial Average performed relatively better, down only 0.10% to close the day.

Source:BTC/USD 4-hour via TradingView

Bitcoin's price has fallen below the Exponential Moving Average ribbon. However, the current bull market will not end as the majority of altcoins hit new highs, indicating that investor sentiment is still positive towards the cryptocurrency market.

The data shows that Bitcoin whales have accumulated a large number of positions between $54,000 and $58,000.

A Bitcoin whale refers to any wallet holding 10,000 BTC or more of Bitcoin.

Source: Whalemap

According to data from on-chain data provider Whalemap, the lowest concentration of Bitcoin whales is around $52,000, with a total of 45K BTC wallet addresses. This means that $52,000 may be the current floor price of Bitcoin and that the cryptocurrency may potentially fall to $52K.