“It held the 100-day, which it hasn’t been below in over two years,” said T3Live.com partner Scott Redler, who follows short-term technicals.
“Bitcoin is testing an important level. … Bitcoin is searching for a spot to find support. It seems to have found it at the 100-day which it has for the past two years or so. The question is what type of bounce,” he said. “Now the 50-day which has been support for the past year could now pose as resistance.”
The 50-day moving average is just around $14,500, according to Redler’s chart. He uses Tradeview data.
“So if the bounce is ‘feeble’ off the 100-day, the 200-day is usually the likely spot. We’ll see if the 50-day that was support for the past year turns into resistance,” he said. The 200-day moving average is around $7,100 on Redler’s.
The Citi analysts, however, say a gap to the 200-day could come quickly. On their chart, the 200-day is $5,658.
Redler said bitcoin’s chart had flashed a major warning.
“I was very cautious on it when it broke $17,000 because it broke the momentum trend ,” he said, adding it is looking to be at a more constructive level now.