It was a tough day for the benchmark cryptocurrency. After showing some signs of weakness, Bitcoin fell briefly below $ 9,000 earlier in the day, before getting enough buying pressure to push it back above this level.
This drop led BTC to the 200-day moving average, which has so far been defended by bulls.
The 200-day MA has historically ruled both upward and downward trends, with pauses above this moving average previously causing rallies, while the effects of pauses below it were dire.
That said, this MA is still at great risk of being lost as the cryptocurrency continues to show signs of weakness.
In fact, an analyst notes that a break below this level is imminent as the cryptocurrency breaks under an important technical pattern.
Bitcoin shows signs of weakness as bulls defend against a dip below $ 9,000
At the time of writing, Bitcoin is trading at just under 5% at its current price of $ 9,120.
This is a notable drop from recent highs of $ 9,800 recorded yesterday just before the recent cryptocurrency decline.
It seems that this movement was caused by two main factors.
The first is the series of rejections BTC has faced for $ 10,000 in recent months. While none of them were enough to cause a sustained downward trend, they all indicated that the cryptocurrency had no sustainable buying pressure.
The second factor that seems to have triggered the move was the 50 BTC trade that stemmed from a previously dormant 2009 purse.
Some investors speculated that this wallet belonged to Bitcoin’s pseudonymous creator – Satoshi Nakamoto – but later data showed that it was not and that the wallet probably belonged to an early user or miner.
Nevertheless, the technical damage has been done and the cryptocurrency is now at risk of revisiting the $ 8000 region.
BTC approaching 200-day moving average; Will it break underneath?
This price drop brought Bitcoin to the 200-day moving average for a short period of time.
This moving average currently exists in the top $ 8,000 region, and buyers ardently defended it from dropping below this level during the downturn observed earlier today.
An analyst recently offered a chart showing the MA against Bitcoin’s current price position, noting that he is closely watching to see how it responds at this level.
Another respected analyst too explained that one technical indicator seems to indicate that a dip below this all-important moving average could be imminent.
He came up with this possibility while pointing to a net indicator, adding that the crypto’s upward trend will be over once Bitcoin falls below this level.
“Quick tip for the super puppy on the 4H. When BTC drops below the net, it usually taps the 200EMA. If the 200EMA breaks down, it’s over. “
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