A tremendous tussle between Bitcoin bulls and bears is underway this morning with a major sell-off causing price to slump towards the $8,450 level of support.
This particular level provided a bounce for Bitcoin’s price on two occasions over the weekend, while it was also a point of resistance on January 8.
A daily candle close below this level would see the world’s largest cryptocurrency flip into a bearish posture with downside price targets emerging at $8,150 and $7,850.
A corrective move to the downside would also see a rejection of a potential golden cross, which would have seen the daily 50 EMA cross the 200 EMA to the upside for the first time since April 2019.
However, the bearish flip will only be confirmed if the daily candle closes below $8,450. Until then, bullish traders have the power to form a fakeout.
Holding the $8,450 level of support is crucial as it would demonstrate that in spite of heavy pressure to the downside, Bitcoin has remained resilient, which would provide strength before the upcoming halving.
Block rewards for miners will be slashed in half this May. Typically, this means that the mining industry needs Bitcoin’s price to double in order for it to stay profitable, which should have a positive impact on price action.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.