The following analysis looks at the details behind the crash and how it affects the overall market’s trend.On the daily timeframe, the price has been rejected from the $30K resistance level multiple times in recent months.
The last rejection from this level and the 50-day moving average near the same price have initiated a significant drop to the downside. BTC has broken below the critical 200-day moving average around the $28K mark. This is a vital trend indicator, and a drop below it points to a potential bearish shift.
Meanwhile, The $25K support currently holds the price, preventing it from dropping deeper. Still, with the overall market structure looking bearish, there is a considerable probability for a pullback to the 200-day moving average and a further continuation lower in the coming weeks.The recent decline looks more dramatic when analyzing the 4-hour chart.
The price has easily broken through the $27,500 support level and pierced through the $25K level with a long wick. Yet, the market is in the consolidation phase on this timeframe, as the $25K area has prevented the price from dropping lower successfully. The RSI indicator has recovered above the oversold region but is still below the 50% threshold. This means that while the price is currently ranging, the momentum is still bearish overall, and the market would likely attack the $25K zone again in the short term.
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Source: TheBlock__ - 🏆 464. / 53 Read more »