In the last week, Bitcoin has moved from being the hero of the crypto story to be the one you should avoid for now. Even though the digital assets still stand as one of the most successful digital assets in terms of value, traders are trying to avoid it at the moment.
This is not far-fetched as the digital assets have seen a drastic fall to trade around $45,000 from a high flying price of close to $60,000. Presently, Bitcoin has fallen, and this can be depicted by the fall in the price of the asset to touch its 9-day moving average. This has caused the SMA line to move towards the east direction steadily.
Bitcoin could trigger a surge from the $44,000 support level
At present, the 50 day SMA is presently way below the 14 day SMA at the $35,000 price mark. The Stochastic level also shows that the market is presently in the oversold region, which shows that a bearish turn might be in the offing sooner or later. Even with a bearish run predicted, there is still little hope for the bulls as they would be hoping to lead the market out of the bearish zone.
With Bitcoin trading at $45,000 presently, analysts have noted this level as the much-needed level that the bulls need before taking the price over the way to the top. The bulls might also find comfort in the $40,000 support zone if the $45,009 level looks too risky to be a support zone. If the $40,000 level doesn’t hold up the price reasonably, the asset could go way in the south to touch the $35,000 price mark.
Trading below the current price, the digital asset needs the bulls’ involvement to stage its much-needed comeback. Notably, this has been seen as the possible way of action after a recent push saw the asset decline after touching the $50,000 price level.
Bitcoin 4 hour chart
Presently, Bitcoin might continue to trade in this pattern in the next few weeks as all things point to volatility in the crypto market. If the price eventually touches $40,000, it would present an opportunity for the bulls to capitalize on making the surge that it needs. A look at the 4-hour chart of Bitcoin shows that trader activities have slowed down over the past couple of days.
This is not surprising as the digital asset’s price is trying to make a comeback, and traders are hodling. After a previous move to top above $56,000 last week, Bitcoin succumbed to the bears after failing to hit above the $60,000 price region. Since then, the price of the asset has traded in a low fashion more than it has done at a high price.
Also, the price of the asset is trading in a way that signals indecision on the part of the traders, which is said to have always lasted for a short time. As it stands now, the $44,000 price region is the best support zone that would help the bears trigger an upward move in the coming days.