The ongoing recovery of the major cryptocurrency asset could face a huge obstacle that can stop the progress towards $5,000 according to the technical charts and we will see why in our latest bitcoin news.
The largest cryptocurrency by market cap jumped to a two-week high at $4,108 thus validating the short term to a bullish trend which change was confirmed earlier in the week.
The break above the $4,000 looks pretty sustainable as we can see throughout the 24-hour charts and the trading volume has jumped above $8 billion as well. This can lead to many new users joining the party creating even bigger upward pressure in the prices. If this happens, there is still a chance for the rally to hover near $4,400 for some time.
At the time of writing, BTC is trading at $4,107 which shows a 9 percent increase over the 24-hour period. According to the charts, we can clearly point out that there is a 50-day exponential moving average located at $4,402, bearish lower price at $4,410 and 38.2 percent Fibonacci retracement of the sell-off from November.
The RSI is also reporting overbought conditions as well. This combined; BTC will have a pretty hard time scaling the resistance zone of $4,400-$4,430 in one attempt. A minor pullback from the current price level will allow the RSI to move over from the overbought territory to bulls favor territory.
Bitcoin may find hard to beat the resistance zone of $4,400 in the short term and a high daily volume above $4,430 could be followed by an even higher movement to $5,000. However, a rally to $4,400 could drop BTC if it falls back below $3,924.
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Bitcoin Is Vulnerable, Mayor Buying Zone Is Below $6,800: Analyst
“$BTC still vulnerable. Longs once above $7900-$8000 (higher) or on panic flushes (lower). Next support: 7600-7435, 7200, 6800, 6400. 6800 is major, determined by all three price action, moving averages (50DMA) and fibs (Dec lows to 2019 highs). 6400 is the bull market level.”https://twitter.com/krugermacro/status/1136286134403764225 A new retracement to the 50 day moving average is pretty much exactly at $6,800. Since Bitcoin is vulnerable, this will likely serve as a buying zone, Kruger added:
“I see the 6800-6200 area as a gigantic buying area. I do not know if price will drop there. I know what I’ll do if price drops there.”Another fellow trader named Josh Rager commented that Bitcoin is condensing regarding its price range - which may lead to another volatile move very soon. The crypto trader 'Moon Overlord' also stands on the side saying that Bitcoin is vulnerable. He echoed his sentiment adding a chart which depicts the previous big corrections, stating:
“If you think #bitcoin is in a bull market and are looking to buy the dip, look to the previous run for templates. The largest dip was barely -40%, most are in the -30%’s. A -30/-40 % dip from here coincidentally lines up with the strongest support in the high 5000’s low 6000’s.”https://twitter.com/MoonOverlord/status/1136250450615947265 It seems like Bitcoin is also gaining a negative traction in the latest altcoin news. As we can see, many altcoins are in the red and following the moves of BTC.
Bitcoin Goes Below $8,000 Overnight: What Is The Reason?
“About 20-30 mins before the dump, a whale moved 25k BTC (worth $215M) to Coinbase. About an hour after the dump, a whale moved 14k BTC (worth $112M) from Coinbase to another wallet.”In the coming altcoin news, we can see that the situation is largely affected by the dominant cryptocurrency. As Bitcoin visits lower levels, altcoins are following too. The big sell order may have triggered even altcoin sales - and the market cap of $253 billion is solid proof for that. What's fascinating is the fact that the only gainer in the altcoin news is Bitcoin SV (BSV) which managed to sustain the momentum and stay at $222 which is its price at press time. Besides it, the entire top 40 list is in a sea of red. The cryptocurrency analyst Josh Rager follows as Bitcoin goes to decline even more. This morning, he wrote:
"Bitcoin continues to push down quite aggressively and would like to see a move above $7824 and hold Eyeing that previous CME futures gap that wasn’t explored at $7175 If Bulls don’t step in, I believe the price is heading that way."On the question if Bitcoin will recover, he said that this may be a short term relief that can last hours or days before another push to retest the Bitcoin price action occurs. Similarly, other traders have emphasized that $8,200 is a crucial level that Bitcoin must sustain right now.
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