Bitcoin Price Looks South After Worst Daily Loss Since November
Bitcoin (BTC) prices fell the most in seven weeks on Thursday and are expected to be strong above $ 4,100.
The world 's largest cryptocurrency market was valued at a low of $ 3,500 yesterday – down from $ 3,627 (closed) – down 9.4%. This is the biggest daily decline since November 24, according to CoinDesk's Bitcoin Price Index (BPI), the fourth-largest loss in the past two months.
Basically, the fierce victory over the past two weeks has been wiped out in the last 24 hours. cryptocurrency was strong near $ 3,550 on Dec. 27 before it surpassed $ 4,000 on Jan. 6.
But the follow-up to break above $ 4,000 was encouraging. Moreover, the sign of the winning bid was near $ 4,130 (head and shoulders opposite neckline) critical resistance, and market prices began to drop off yesterday as the price fell sharply.
As a result, bears can feel the courage and attack the crucial support lined up near $ 3,550. In writing, BTC is changing hands for $ 3,630.
Bitcoin dropped to $ 3,500 yesterday, showing a bearish daily chart. cryptocurrency also closed below the important 50 day moving average (MA) support,
The transaction volume jumped to the highest level from December 21, adding credit to bearish movements. On the other hand, the Relative Strength Index (RSI) on the 14th day violated the rising trend line downward.
As soon as the odds are in favor of the bear, you will receive instant support of $ 3,565 (minimum on December 27). It merely reinforces bear-like technology installations.
On the weekly chart, BTC created an external rebound seconds of bearishness. This week's price action failed to break through the four week long 200 weekly index moving average (EMA) hurdles last week's highest and lowest prices.
The candlestick pattern indicates that the week began with optimism but it came to a more pessimistic conclusion. As a result, it is widely regarded as a bearish reversal signal.
In short, the door was opened for re-testing of the 200-week MA, lined up to $ 3,250. Supporting that weak case is a downward tilted 10-week MA.
BTC is at risk of breaking the record low of $ 3,566 on the weekend. This adds to the confidence in bearish setups on weekly charts and opens the door for $ 3,250 (200-week SMA).
BTC is very unlikely to receive strong bids in the short term, but a quick recovery above $ 4,000 will stop the weakness.
Conducting a weekly closing (Sunday's UTC closing) over a 200-week EMA $ 4,148 or higher will put the bull back in the driver's seat and you can continue to rise to $ 5,000.
Disclosure: Authors do not retain cryptocurrency assets at the time of writing.
Bitcoin image through Shutterstock; Charts by Trading View
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