Cryptocurrencies have been struggling over the past few days with increased scrutiny and piling up of bearish signs. Bitcoin, for instance, is nearing a turning point, and according to popular cryptocurrency analyst DonAlt, it is closer to testing support levels of $6,700.
Bitcoin Drops Below the 50-Day Moving Average
The signs are indicating that Bitcoin is headed for more losses after breaking below the 50-day moving average. This is an indication of the end of the recent rally that brought the world’s largest crypto close to $14,000 at the end of last month. The digital coin has fallen below the GTI Vera Band indicator’s lower limit, and as of the last session, BTC was trading at $9,475.
The analyst measured Bitcoin’s current bias on a three-day span on Monday, which provided clarity on the digital coin’s price movement showing that it went past the 3-D pennant structure but on the downside. Bitcoin has failed to enter the range, and this further asserts the possibility of extending its downward trend.
As the coin deepens its plunge, DonAlt has provided three major support areas. The first region is between $8,150 and 8,850, which has been a strong resistance level for Bitcoin for multiple occasions this year. Also, he has indicated that the second support area will be in the region of $6,700 because it has an account of experiencing enhanced selling pressure. Judging from how the coin performed last year at the $6,700 support level, prices are likely to be sent higher at more than 79% and 51% respectively for the two occasions.
The cryptocurrency market is reacting to various issues happening, such as greater regulatory scrutiny on digital coins, which will likely become a major talking point as the US approaches its 2020 elections. Other developments that have sent the prices down include the fallout from launching Facebook’s (NASDAQ:FB) stablecoin, as well as the ongoing trade war between the US and China.