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Bitcoin falls below a critical support level [Video]

The price of Bitcoin and the other cryptocurrencies has been falling steadily since their peak in November. The price of BTC/USD has declined around 40% from its all-time peak of $69,000 to about $43,000 now.

Until a recent break below the significant support of 45,500, which lines with the 200-day exponential moving average, prices had rangebound between 52,000 and 45,500 hurdles for some time, but the subsequent break below this technical support has brought sellers back into the market to drag the price lower.

In the short term, a surge in sellers could help move down the price toward the next support area, around 41,500 dollars.

The next obstacle may come at 39K when the bearish momentum persists, proving more challenging later on.

In the event the price falls below this critical support level, the possibility of 35,000 being breached can be seen.

BTCUSD

On the flip side, if buyers emerge and drive the price above the 200-day EMA again, there might be a chance of recapturing the 52,000 peaks, and holding above this stretch would turn the trend bullish.

The momentum oscillators are expressing a bearish bias here. Despite this, the RSI reading under 30 indicates a situation of oversold conditions that could slow down the downward movement for a short time.

The momentum is in the selling area, and the MACD bar is dipping below its signal line in negative territory.

Bitcoin falls below a critical support level

Author

Ali Mortazavi

BEc, CMSA, Member of IFTA - International Federation of Technical Analysis, Associate Member of STA - Society of Technical Analysis (UK).

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