Bitcoin Made a Bearish Move, Entering a New Range

Cryptocurrencies turned pretty bullish in Q2 of this year, after the big decline last year. BITCOIN surged more than $10,000 higher, from around $3,000 to below $14,000 until the end of June. But, the climb ended up there and Bitcoin has retreated lower since then.

The highs were getting lower and they formed a bearish trend line. But, lows were not getting lower, so a support level formed around the $9,000 level and a triangle formed on the daily chart until the last week of September, when that support area was broken.

Since then, Bitcoin has traded in a range around the 100 SMA (red). But the 20 SMA (grey) started providing resistance when it caught up with the price, pushing the highs lower this month. Eventually, buyers gave up and Bitcoin made a bearish move on Wednesday, breaking below last month’s low.

But the decline stopped right at the 200 SMA (purple) which seems to have turned into support now. I expect Bitcoin to be trading between the 100 SMA at the top and the 200 SMA at the bottom for a few weeks before making another move, which could go both ways. But since the trend is bearish,  a move down is more likely.

 

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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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