Bitcoin has been stuck below 200 simple moving averages for several days. Support at $ 31,000 has become extremely important for the bulls as it helps stave off potential losses of up to $ 25,000 and $ 22,000.
Currently, the first cryptocurrency is trading at $ 31,380 with relatively low trading volume, which limits attempts to rise above the 200 SMA resistance on the 4-hour chart.
The upcoming death cross is likely to add confidence to the bearish outlook, further delaying the recovery. This pattern forms when a short-term moving average crosses over a longer-term moving average. In technical analysis, the cross of death is interpreted as a bearish pattern that either leads to large losses or prevents prices from rising.
Looking at the moving average convergence divergence or MACD, Bitcoin is likely to go into consolidation before the breakout occurs. MACD measures the momentum of a given trend and its strength. At the moment, the technical indicator does not show the exact direction for Bitcoin, as it is just below the zero line.
Last week bitcoin demonstrated its ability to stabilize as an asset, with the result that it now fluctuates in a wide range from $ 31,000 to $ 34,500.
And this stability shows that Bitcoin can be used as a store of value in the long run.
Daily Bitcoin levels
- Spot Rate: $ 32,263
- Relative change: -445
- Percentage change: -1.4%
- Trend: bearish (short-term)
- Volatility: low
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