Bitcoin Will Close Below Key Price Support in First Since 2015
Bitcoin is expected to close for the first time in three years or less.
The 21-month index moving average (EMA), used for five consecutive months, fell short on Nov. 15. On a written basis, previous support conversion costs were $ 5,896 and BTC has changed hands at Bitstamp at $ 3650.
The drop below EMA support means resuming selling at a record high of $ 20,000 in December. This means that the path of least resistance is a disadvantage. Despite the oversupply in the short term, recovery to more than 21-month EMA is currently being ruled out.
Therefore, on a Friday (UTC time) of less than 21 months EMA, the monthly closing looks like a completed transaction. In particular, you will receive monthly EMA support for the first time since October 2015.
As you can see above, the 21-month EMA has limited disadvantages from June to October. However, persistent bear failures have failed to attract bulls.
The chart also shows that BTC's last rest under the 21-month EMA seen in September 2014 is valid for 13 months. The chart also shows that BTC's last rest under the 21-month EMA seen in September 2014 is valid for 13 months. If the historical data is a guide, cryptocurrency can stay below the resistance level for some time.
4 hour chart
The outlook for the next 24 hours will remain weak as BTC is stuck in the down channel of the 4 hour chart. Also under 200 Candle EMA Below 100 Candle EMA Under 50 Candle EMA stacking order is a classic bearish indicator.
The Relative Strength Index (RSI) shows a strong dispersion. However, this pattern gains confidence only when the price can relieve the immediate resistance to $ 4,000.
The decline in BTC under the key 21-month EMA support was likely to reduce the likelihood of leaving the bear market for several months.
Sunday 's lowest price of $ 3,474 means that the recovery to $ 4,000 is just another dead cat bounce, and the price can psychologically lose $ 3,000 in support.
Once the $ 4,000 psychological hurdle is resolved, BTC will be able to test $ 4,500 (the top edge of the falling channel) within the next 24 hours and demonstrate the gentle difference in the 4 hour chart RSI.
The forecast for the monthly chart is expected to exceed the current resistance value of the EMA for 21 months at $ 5,896.
Disclosure: Authors do not retain cryptocurrency assets at the time of writing.
Bitcoin image through Shutterstock; Charts by Trading View
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