2015 Bitcoin Price Resistance Re-Emerges Amid Bitfinex Controversy

View Bitcoin's failure to hold on to the gains above the 50-week moving average, currently at $5,477, could prove costly.

A long-term technical line, which served as strong price resistance four years ago, is capping the upside in bitcoin's price.

The breakout was short-lived with prices falling more than 5.5 percent to hit a low of $4,991 yesterday, possibly due to a controversy involving crypto exchange Bitfinex and the affiliated stablecoin issuer Tether.

The news renewed concerns regarding the legitimacy of the stablecoin widely used to fund bitcoin purchases, sending both the crypto market leader and tether lower against the dollar.

Bitcoin's failure to hold above the 50-week MA could be a cause for concern for the bulls, as a similar rejection at the crucial average had ended up killing the nascent bull market in July 2015.

Back in 2015, bitcoin violated the bearish lower high of $297 in the first week of July, confirming a bearish-to-bullish trend change.

Further, the average resistance was finally breached in October after it had bottomed out.

The latest rejection at the 50-week MA could prove to be a major development - espcially as the average is reporting a bearish slope similar to the one seen in July 2015.

Further, the price has found acceptance above the 5- and 10-day MAs, which have shed bullish bias.

Bitcoin image via Shutterstock; charts by Trading View.