Bitcoin’s pullback to $105,250 on Tuesday implies the possibility for additional price drop. After recently failing to close above $109,000 on both Sunday and Monday, fears deepened among investors as the cryptocurrency has shown signs of weakening.
Technically Bitcoin’s price is trapped between a downtrend line and moving averages. All of this combines to make it very difficult for any bullish momentum to gain any real traction. Regardless, this consolidation is indicative that a big price swing is likely within the next few days.
Further selling pressure kicked in on Tuesday, raising the chances of a drop to $104,000. Having broken below the clear line of support around the $20,000 range, a retest of the $100,000 level seems more and more likely.
Market analysts expect aggressive defensive moves by buyers at the $104,500 price point. Step back from providing this level of sustained support, and we risk a downturn into a modern-day psychological barrier of $100,000.
Buy signals— A close above the descending 20-day exponential moving average (EMA) would be the first sign of strength. If buyers are able to break through the downtrend line, this will open the door for a test of the all-time high at $111,980. On the other hand, a continued price drop beneath the moving averages may spark a fall to $104,500 and possibly even $100,000. Such a move would serve to maintain Bitcoin inside a bearish descending triangle pattern.
Don’t let these bearish signs fool you. Some analysts are pointing to Bitcoin’s established long-term bullish trend.
Bitcoin targets $200K as profit metrics enter ‘cautiously optimistic’ zone - cointelegraph.com
