View Bitcoin is again closing on the 200-week moving average, which served as strong support in December.
A failure to push prices below the 200-week SMA support would weaken the bears.
Bitcoin is on the defensive after a drop to six-week lows and could soon test crucial long-term support below $3,300.
The long-term support level put the brakes on a sell-off back in December, and was followed by a corrective bounce to levels above $4,000.
A strong bounce from the 200-week SMA line would likely embolden the bulls, but the probability of a bull reversal from that SMA support looks low, according to technical indicators.
As seen above, BTC is again trading within striking distance of the 200-week SMA of $3,298.
The support had held ground on a weekly closing basis in mid-December, possibly because the relative strength index was reporting oversold conditions at the time.
This time the SMA support could be breached, as the RSI is currently in undersold territory.
A convincing break below the 200-week SMA of $3,298 could be preceded by a minor bounce.
Bitcoin image via CoinDesk archives; charts by Trading View.
Down Again: Bitcoin Is Closing on Key Long-Term Price Support
gepubliceerd op Jan 29, 2019
by Coindesk | gepubliceerd op Coinage
Coinage
Vermeld in dit artikel
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.