Bitcoin looks primed for a major move to the downside after falling by 3% following yesterday’s weekly candle close.
It now lies precariously above the psychological level of support at $10,000, with the 100 EMA on the daily chart at $9,800 emerging as a potential short-term downside target.
The recent breakdown in price comes after yet another rejection at $11,000, which marks a fourth consecutive lower high.
Since reaching a yearly high of $14,000 in June, Bitcoin has consistently failed to achieve a higher high, being rejected at $13,200, $12,200, and more recently $11,000.
This is typically a bearish charting pattern as it demonstrates bullish exhaustion as well as a lack of continuation.
The four-hour exponential moving averages are currently battling it out to prevent a golden cross. The 200 EMA has been above the 50 EMA since the death cross on August 17, which resulted in a 13% drop in the following 12 days.
But the 50 EMA briefly crossed the 200 EMA back to the upside over the weekend, tempting a golden cross before this morning’s sell-off saw it cross back to the downside.
In order for a bullish cross to come into fruition, Bitcoin would need to close four-hour candles back above $10,400. If Bitcoin can bounce and that scenario plays out, it would be feasible to see Bitcoin rise to above $11,000 in the coming days before testing $12,000 and potentially new yearly highs.
For more news, guides, and cryptocurrency analysis, click here.
Las Vegas, US, 1st November 2024, Chainwire
From digital art to real-estate assets, NFTs have become a significant attraction for investors who…
Singapore, Singapore, 21st October 2024, Chainwire
HO CHI MINH, Vietnam, 17th October 2024, Chainwire
London, UK, 16th October 2024, Chainwire
Sinagpore, Singapore, 16th October 2024, Chainwire