Bitcoin price seems to be struggling. We may see another leg down here. Sentiment is dropping as $7,000 levels are slowly getting rejected. Will watch for the dip below 7K in the near term here.
Bitcoin price update: Bitcoin price has been in consolidation phase the last week or so. If we take a look at the 20 day moving average, we can argue a strong move to upside or downside is coming to fruition. Two prices emerge, $8290 on the upside and $6630 on the downside. Right now BTC is hovering right on the 20 day moving average. Historically, btc has rallied when trading above the 20 day and fallen sharply when rejecting it. We have outlined that on the chart. IF Bitcoin can get above the 20 day moving average around $7450, we can argue the bullish narrative. You should see the sentiment in the next couple days or so in terms of which direction bitcoin ultimately wants to go.
The creation of cryptocurrencies in circulation has accelerated since 2015. If we take a look at the data we will see issuance has grown 890% + since 2015 in terms of how many cryptocurrencies are available to the public.
Per our original post on Nov 18th, we witnessed technical indicators that showed bearish price sentiment. During this time, Bitcoin price was hovering around $8,600. We mentioned that based on dipping below key support levels, $7,000 on the low end might get tested. As of today, Bitcoin price has sold off substantially and is currently trading right around $7,000. Bitcoin price needs to hold and trade above $7,100 levels in our opinion to turn around the sentiment. If Bitcoin cannot reach and hold those levels, we will then begin to argue the $5,000 test on the downside as well. As of right now, it's a bit too early to solidify our analysis. We will watch it going into the early week here and post an updated analysis.
Bitcoin Price - BTC just recently dipped below the 50 day moving average on the 1 year chart. Historically speaking, this has been a bearish indicator for Bitcoin as it's dipped below the 50 day moving average multiple times, all resulting in -$1,000+ declines in price. If bitcoin can close above the 50 day moving average, there still may be hope for a bounce up. On the flip-side if Bitcoin closes below that 50 day moving average support level, you could potentially see a $7,000 test on the downside.