Amidst a decline in the price of bitcoin, the world's most valuable cryptocurrency could find support at $7,500 - that is if it follows past patterns on the charts.
Bitcoin has faced selling pressure over the last few days, despite an impending golden crossover on the three-day chart - a bullish crossover of the 50- and 200-candle moving averages, as discussed last week.
It is worth noting that a similar golden crossover on the three-day chart was observed in early February 2016, when a bitcoin bull market was then in its nascent stages.
Prices dropped to the 200-candle MA support days before the bull cross happened and that level was never put to test again, as seen in the chart below.
As seen above, BTC took a beating in six weeks leading up to the golden crossover confirmed on Feb. 3, 2016.
Prices topped out at $467 seen in mid-December 2015 and almost tested the 200-candle MA support line of $348 in three days to January 19.
Essentially, the 200-candle MA served as a base ahead of the golden crossover and the level was never tested again throughout the rally from $450 to $20,000.
The price action seen over the last few months looks eerily similar to the one discussed above.
Essentially, the cryptocurrency is losing ground in the run-up to the golden crossover the way it did before the bull cross of February 2016.
All-in-all, there is a strong case to believe that BTC would drop to the 200-candle MA, currently at $7,448, before the confirmation of the golden crossover on the 3-day chart and then rise back sharply.
The Case $7.5K Could Become Bitcoin's New Price Support
gepubliceerd op Jul 17, 2019
by Coindesk | gepubliceerd op Coinage
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