The most powerful cryptocurrency on the market still faces the threat of falling below $7,100.
Bitcoin has dropped by 1.7% this week, reaching $7,600 over the weekend. As the Bitstamp reports, it is down 48% from its peak of $13,880 in June and indicates a fall of almost 13%.
A new trial of a 21-month Exponential Moving Average (EMA), currently at $7,097, is planned under the supervision of traders. In the period between five months last year, the EMA acted as a strong supporter.
With a record high of $20,000 in December 2017, Bitcoin sales ended with 21 months of EMA approval in June 2018.
Sellers were repeatedly unable to close below the midline on a monthly basis over the next four months. Many were confident by mid-October that the cryptocurrency had made its bottom at a crucial level.
Customers, on the other hand, have remained intangible, and in mid-November the average support, which at the time was around $6,100, was well below average with large volumes. Disturbance of the support caused a long stop, leading to a massive takeover.
The 21-month EMA, now at $7,097, is clearly a number worth considering in the near term, struggling to break through the bearish support.
Prices were in fact lower than at a last month’s critical support but remained unchanged at the monthly closure (November 30th).
Only a week ago, the trading floor remained at the level it had reached, which resulted in a leap in value on December 9, which peaked above $7,660.
In the event of EMA continuing to limit losses, we can see that the trade is on the chart, which results in a significant rise in market prices.
Still, there will be a near-term risk of a sell-off of $7,870 or more. When printing, Bitcoin changes at $7,200 per Bitstamp.
Closing the UTC above the high of November 29 at $7,870 will invalidate the adjustment of the lower highs on the daily chart (top left) and confirm the short-term bullish reversal.
However, the coefficients are currently in favor of a decline, as suggested by an off-day Monday statistics and a slower move on Tuesday.