Bitcoin prices have had an unusual couple of weeks. The market has been able to rebound from June’s crash but it now is back at the bottom, with a loss of more than $3,000 in just a few days. This rapid decline of the cryptocurrency has brought it below its technical level. Despite having some indicators that were bullish, the cryptocurrency has completely reversed its decline from $25,000 at first.
The technical levels of Bitcoin drop
Bitcoin prices have fallen quickly, and this has resulted in lower 50-day moving medians. It was able to hold above $23,000 even though it fell to that level. Bitcoin lost its foundation at $23,000. Now, it trades just below $21,000
The bitcoin 50-day moving mean had dropped to $21,891 and the current price at $21,433 as of writing. This trading level was well below its 50-day MA. It is crucial to determine when investors might turn towards bullish or bearish sentiment. Bitcoin has declined below this level, which indicates investors have stopped looking at the digital asset for purchase.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
The 200-week moving mean is another crucial technical level bitcoin lost. The 200-week moving average was an important technical level for bitcoin. Bulls worked hard to get it back. Bitcoin had risen above this level a few weeks back and was now at $25,000,000. It had managed to stay above this level even after that. This was, up to Thursday.
Digital assets are down 8.74% over the past 24 hours and 10.09% in the weekly charts. This decline has followed the Fed’s hawkish stand in recent times. In essence, this means that the market will continue to wait for more Fed decisions regarding the financial markets.
Bitcoin had registered a bearish trend by falling below its 200-week moving mean and the 50-day MA. This suggests that there has been a reverse in the sell-offs and is strengthening bears. These trends can only reversed through accumulations. There hasn’t been enough buying from bitcoin holders holding 100 to 10,000 BTC to completely turn around the sell-offs.
Presently, bulls are trying to keep the digital asset’s price above $20,000. Short traders have increased as market weakness has been perceived. The loss of momentum is continuously driving the bitcoin price lower. Unless whales and institutional investors are buying large quantities, it is unlikely that bitcoin will touch $25,000 or test $20,000 again.
Featured image by Coingape. Chart from TradingView.com
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