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  • 600-Day MA Starts To Break Down

    600-Day MA Starts To Break Down

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    Charts show the Bitcoin price seems to be falling below the 600-day moving average, a sign that could be bearish for the crypto.

    Bitcoin Begins To Lose 600-Day MA Support Line As Price Crashes Below $39k Again

    As pointed out by an analyst in a CryptoQuant post, the price of the crypto is crossing below the 600-day MA curve now, a line that has served as support for BTC in the past.

    A “moving average” (or MA in short) is an analytical tool that takes the average of any quantity over a particular time period. As the name already suggests, this average constantly updates itself as time passes and new values arrive.

    What this tool does is that it removes any short-term fluctuations from the chart being studied (which is the Bitcoin price in this context), and smooths out the curve.

    This makes moving averages quite useful for studying long-term trends, where local variations aren’t that important.

    Related Reading | Is Bitcoin Gonna See Another Big Drop Soon? Historical Trend May Say Yes

    MAs can be taken over any possible range, whether that be two days, two hundred days, or even only two minutes.

    Now, here is a chart that shows the trend in the 600-day MA version of the Bitcoin price:

    Bitcoin 600-Day MA

    Looks like the price curve is dipping below the 600-day MA line now | Source: CryptoQuant

    As you can see in the above graph, the Bitcoin 600-day MA curve has acted as support for the coin’s price many times in the year so far already.

    However, the latest trend seems to suggest that this support line is now breaking down as the price line is crossing below the MA on the daily timeframe.

    Related Reading | Time Vs Price: Why This Bitcoin Correction Was The Most Painful Yet

    Though, the breakdown may not be yet fully confirmed. The quant in the post believes that if the breakdown fails here, Bitcoin may then use the level as a springboard to push higher.

    In the case that the breakdown does stand, then a bearish outcome may perhaps be in store for the cryptocurrency.

    BTC Price

    At the time of writing, Bitcoin’s price floats around $38.8k, down 1% in the last seven days. Over the past month, the crypto has lost 12% in value.

    The below chart shows the trend in the price of the coin over the last five days.

    Bitcoin Price Chart

    Looks like the price of the coin has plunged down over the last few days | Source: BTCUSD on TradingView

    Bitcoin briefly seemed to have been on the path of recovery just a few days back as the coin broke above the $42k mark.

    However, the cryptocurrency now seems to have plummeted down again as it once more revisits the sub-39k levels.

    Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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  • Bitcoin Starts Recovery, Why Close above 100 SMA Is Important

    Bitcoin Starts Recovery, Why Close above 100 SMA Is Important

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    Bitcoin price started a fresh increase from the $37,500 support against the US Dollar. BTC must clear the 100 hourly SMA and $40,000 to move into a positive zone.

    • Bitcoin started a decent increase above the $38,000 and $38,500 resistance levels.
    • The price is now struggling near the $40,000 zone and the 100 hourly simple moving average.
    • There was a break above a major bearish trend line with resistance near $38,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    • The pair must settle above the $40,000 barrier to continue higher in the near term.

    Bitcoin Price is Rising

    Bitcoin price extended its decline below the $38,200 and $38,000 support levels. BTC tested the $37,500 zone, where the bulls took a stand.

    A base was formed near $37,500 before the price started a fresh increase. Earlier, there was a break above a major bearish trend line with resistance near $38,250 on the hourly chart of the BTC/USD pair. The pair climbed higher nicely above the $38,000 and $38,500 resistance levels.

    Bitcoin broke the 23.6% Fib retracement level of the main decline from the $42,630 swing high to $37,533 low. It is now struggling near the $40,000 zone and the 100 hourly simple moving average.

    Bitcoin Price

    Source: BTCUSD on TradingView.com

    The 50% Fib retracement level of the main decline from the $42,630 swing high to $37,533 low is also near the $40,000 zone. Therefore, a close above the 100 hourly SMA and $40,000 might trigger a steady increase. The next major resistance is near the $41,500 level. Any more gains could set the pace for a move towards the $42,500 resistance zone in the near term.

    Fresh Decline in BTC?

    If bitcoin fails to climb above the $40,000 and $40,200 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $39,000 level.

    The first major support is now near the $38,750 zone. A clear downside break below the $38,750 support might call for a sharp decline. In the stated case, the price might decline towards the $38,000 level. The next major support is near the $37,500 zone.

    Technical indicators:

    Hourly MACD – The MACD is slowly losing pace in the bullish zone.

    Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.

    Major Support Levels – $38,750, followed by $38,000.

    Major Resistance Levels – $40,000, $40,200 and $41,200.

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