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Several technical analysts have commented on Bitcoin’s recent moves. (Photographic illustration by … [+] Chesnot / Getty Images)
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Bitcoin prices have struggled in recent times, falling more than 15% between yesterday and today amid a wider market sell-off.
The world’s largest digital currency fell to just $ 31,035.49 this morning, according to data from CoinDesk.
At this point, the cryptocurrency was down about 15.6% from yesterday’s intraday high of $ 36,777.56, additional figures from CoinDesk reveal.
Bitcoin has suffered these declines at a time when the digital asset has been trading primarily between $ 30,000 and $ 42,000 since the end of May.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
In light of the current market conditions, several technical analysts have pointed out the crucial price levels that traders should watch out for.
Justin Hartzman, co-founder and CEO of cryptocurrency exchange CoinSmart, offered his take on this matter.
On-chain measurements show that the SOPR (Exit Profit Spent Ratio) is less than one for Bitcoin, which means traders are mostly selling their coins at a loss, he said.
Given these sales models, the support level to watch is $ 30,000.
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If the bears gain the upper hand, going above $ 30,000 could trigger a bigger sell-off and spur a wave of activity that will push prices down further, Hartzman said.
As such, all eyes will be on the psychological level of $ 30,000, as buyers may be targeting it as a potential entry point.
William Noble, chief technical analyst at the Token Metrics research platform, also spoke.
There is a lot of support near 30.5-31k. If this breaks, a switch to 24k could occur.
Julius de Kempenaer, senior technical analyst at StockCharts.com, offered a similar contribution, pointing out that there is intermediate support just below 30,000.
However, he noted that the actual level to watch is the old $ 20,000 breakout level, which should provide major support for BTC if it drops this big.
Additionally, de Kempenaer cited another technical indicator, which helped paint a bearish picture of the near-term outlook for digital assets.
BTC is currently completing a break with a symmetrical manual triangle which indicates lower prices in the near future.
At the moment, the trend is clearly downwards while the upside potential is very limited, he said, indicating that it is not really an ideal situation to re-enter this market.
Katie Stockton, Founder and Managing Partner of Fairlead Strategies, LLC, offered a more optimistic view on the subject, saying that:
Today’s bitcoin decline marks a further test of support in the $ 34,000 area. This is not a decisive breakdown, but it would become if we saw a few weak closings (today and tomorrow) at current levels.
She added that the oversold conditions are in place for the short to medium term, giving bitcoin a better chance of finding its place.
Short-term momentum has deteriorated, but not to the extent that we have a sell signal in the daily MACD.
A rally and subsequent close above the 20-day MA would be a short-term bullish development that would pave the way for the 50-day MA.
Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, and EOS.
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