This Former Bitcoin Price Support Is Now Capping Gains

Bitcoin’s (BTC) weekly gains were worn out at the weekend at a key moving average that antecedently offered support.
The leading cryptocurrency by capitalization jumped to highs on top of $6,750 on Sat, having weakened the immediate pessimistic case with a recurrent defense of the psychological terms of $3,500 last week.
BTC, however, did not secure a UT1 shut on top of the 21-day MA. additional significantly, rejection at that MA hurdle established expensive – BTC fell three.8 % to $3,470 yesterday.
So, it can be argued that the MA line, that served as robust support within the time period leading up to Gregorian calendar month. 10, has currently taken on the role of stiff resistance.
As of writing, BTC is dynamical hands at $3,527 on Bitstamp, representing a four.30 % drop on a 24-hour basis. Meanwhile, the 21-day MA is seen at $3,732.
The robust pullback from the 21-day MA indicates that the “sell on rising” mentality continues to be quite robust. After all, the first trend continues to be pessimistic, as pictured by the downward sloping 10-week moving average (MA).
The likelihood of a sustained break below $3,500 remains high whereas BTC is control below the new resistance of the 21-day MA.

Daily chart

As seen on top of, BTC unsuccessful at the 21-day MA on Sat and fell back to $3,500, reinforcing the pessimistic read imply by the downward sloping 5- and 10-day exponential moving averages (EMAs) and therefore the 14-day relative strength index (RSI) of forty two.00.
As a result, the likelihood of a drop below $3,500 has enhanced. that might solely bolster the pessimistic technical setup and open the doors to Dec lows close to $3,100.
However, the pessimistic case would weaken if BTC secures a UT1 shut on top of the 21-month MA of $3,732.

Weekly chart

The long higher shadow (spread between high and close) connected to last week’s candle represents the “sell on rising” merchant mentality – when a fast rise, a sales event erased the gains.
The primary trend remains pessimistic as long as BTC is commercialism below the downward sloping 10-week MA.

View

• BTC’s pullback from the 21-day MA might encourage the bears to push
  costs below $3,500. Acceptance below that level would expose the DecDec low $3,122.
• A convincing move on top of the 21-day MA of $3,732 would weaken the
  pessimistic case and open up top side towards $4,000. However, the
  first trend is pessimistic, thus forcing a move on top of the 21-day
  MA can be a tricky task for the bulls.