Bitcoin Facing A Big Challenge, As Buyers Try to Resume Control
Bitcoin lost half its value compared to about a week ago, as it fell from $60,000 to $30,000, with the biggest decline taking place yesterday. There were several reasons for this decline, such as further crypto restrictions in China, Elon Musk dropping Bitcoin from Tesla, as well as cryptos being really overbought in the last two months.
Most of the crypto market lost around 50% of its value or more. Bitcoin fell to $30,000 but stopped right there yesterday in the US session. Yesterday we saw an attempt at reversing the price higher, but sellers had another attempt today.
Although, right now BITCOIN is pushing higher, but it is facing the 20 SMA (gray) on the H4 chart, which has acted as resistance for this digital coin during the decline lower. This is a test for buyers, if they psh above it then the reversal will be official.
If not, twe might see another attempt at the downside. Although, the selling pressure has abated now, so I am assuming that the bullish trend will resume in cryptos now. We are long on other cryptocurrencies such as LITECOIN and RIPPLE , so we are staying out of Bitcoin for the moment.
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