03 Feb Bitcoin Price Analysis – Fighting Off Lows
Though Bitcoin is fighting, it looks like we’re seeing another bad day for it. Today, the price of BTC fell below the $8,000 mark, sinking to as low as $7,700, which marks the second time that it failed to hold a deciding “psychological threshold” for investors. Since earlier today, it has bounced back and stabilized in the range of between $8,500 and $8,800. At least it is fighting.
Today’s movement has set BTC up for a new short-term price range with a support level at $8,500 and resistance of around $9,150 (as shown on chart). Since BTC already rebounded quickly off its daily lows, chances are slim that it drops below $8,000 again within the next few hours.
If we look at BTC’s exponential moving averages over five and twenty days, it reinforces “all good for now” sentiment. As we speak, the five-day average (the pink line) has just crossed over its twenty-day average (the blue line), indicating that a bear market is turning bullish.
However, this trend is somewhat weak since trading volume has cooled down, which may explain the reduced volatility as we progress through the day.
What investors need to take into account is that a substantial amount of panic selling is taking place right now. For instance, yesterday’s freefall in the entire cryptocurrency market came after a misleading report coming out of India that the nation would “ban trading” completely, prompting a market-wide selloff.
So for something as unstable as cryptocurrency, it’s actually encouraging to see that Bitcoin has managed to stabilize during recent hours. It’s still something investors must be patient with as this market continues its evolution toward maturity.
Remember, more and more companies are beginning to adopt Bitcoin, or at least experimenting with that idea, so it’s far from “doom and gloom” yet. Bitcoin is fighting.
Featured Image: twitter