Bitcoin Price Collapsed Below $8,300 Over the Last 24 Hours, Should Bulls Be Worried?January 24, 2020
Last week, the price of Bitcoin (BTC) rejected and rapidly declined into the $8600 support level following a positioning to the 200-day moving average line. That was the result after making a wick down to the $8450 level.
Since then, people across the crypto space have witnessed how BTC has been traded around $8600.
From the past four trading days, the support level of Bitcoin at $8450 has seen with three attempts, which was rapidly got by the bulls. However, the support line tends to crack down in the over the past 24 hours. So, for the first time 10 days, BTC was trading below $8400 level.
What Caused the Crashing of BTC Price?
Despite the rise of 35% in less than a month, the price of BTC failed to close above the overhead resistance level and even regain its previous highs.
Following the above $400 sell-off in the late-night hours, the price of Bitcoin temporarily breaks through $8,300. For many, the aforementioned price drop was unexpected, so they seek for reasons behind it.
It was reported that the leading crypto asset by market capitalization failed to pierce above the 200-day moving average line. As a result, it signaled larger investors that it was not fully set for a fresh uptrend.
According to the speculations of crypto analysts, there’s a big chance that BTC’s price is poised to re-test the 50-day moving average that is sitting near $7,500. However, it could reach the key support level, and Bitcoin has to test the $8,000 and $8,200 support lines and then lower to $7,600 and $7,800.
In the case that Bitcoin fails to fall back below the $7,400 level, a fresh low will likely to happen in the next few days. Not only that, but analysts also worry that the current price action of the crypto might follow the path it took back in July 2018. That was the period when the BTC reached the bearish market low at $3,100 level.
What’s the Next Move?
Bitcoin is currently fighting over the resistance levels of $8400 and $8450.
A little below the $8400 and $8450 levels is the $8,300, together with the 38.2% Fib retracement degree. Down below, the $8000 can be found, which is compromised with the 100-day moving average line.
On a bullish view, if BTC could successfully protect the $8450 level, then it will result to a first resistance level of $8600. That suggests that the support level will then act as a resistance level. Above that level, $8730 to $8750 levels are lying, which is the Fib retracement degree of $38.2% from the new severe drop in the previous days.
After a short-term ascending trend line’s breakdown, the bearish momentum of RSI has been witnessed. Now, the RSI faces a few good-old resistances, which gradually turned the support line at 54 and 55. On the other hand, there is still a sign to a declining move.