Bitcoin (BTC) has recently taken a dip, dropping by a staggering 3.85%, which translates to a loss of $9,000, bringing the price down to $8,835. This sudden turnaround follows a brief rally that saw Bitcoin flirting with the $9,188 mark, just above the hopeful target of $9,150 that many traders anticipated before aiming higher towards the $9,300 milestone.
The Technical Details
Most traders had their eyes on significant resistance levels at $9,150 and $9,300, and as of now, the daily chart indicates that BTC remains above the 20-MA of the Bollinger Bands at $8,858. But will it hold?
Key Support Levels to Watch
If the price fails to regain the $8,900 support, there’s a risk of sliding down to the 200-day moving average resting at $8,695. Below that, we have the frequently tested support at a cozy $8,400 where the 128-DMA hangs out. It’s like a party zone for Bitcoin; it always beckons back to check in.
Bearish Scenarios Ahead
Michaël van de Poppe, a contributor and seer of sorts in the crypto domain, offered a glimpse into a potential bearish scenario. He suggested that if Bitcoin is unable to uphold the 21-week moving average around $8,676, we might see a significant drop to the $8,200 level.
Quote from the Expert
“Losing that zone and we’ll see momentum and $8,200 retest downwards as the primary possible outcome,” – Michaël van de Poppe.
Market Sentiment: A Cautiously Optimistic Outlook
Despite these potential pitfalls, van de Poppe maintains a fairly buoyant outlook on Bitcoin’s market structure. He notes that after a substantial rally in the first weeks of the year, a retracement and correction aren’t necessarily doom and gloom. They could pave the path for healthy, sustainable growth.
Keeping an Eye on Key Levels
In the near term, the ability to hold the ground between the 200-DMA and the $8,900 support is vital. If this area crumbles, a subsequent retest of the $8,400 support may very well be on the cards. A weekly close under that 21-WMA mark ($8,676) could send traders into a panic.
Altcoin Reaction: The Ripple Effect
Bitcoin’s pullback isn’t happening in isolation. A good handful of top-20 altcoins are following suit with declines ranging from 3% to 5%. Of note:
- Bitcoin Cash (BCH): -4.16%
- Litecoin (LTC): -2.67%
- Binance Coin (BNB): -5.03%
- Tron (TRX): -5.78%
The cryptocurrency market cap has settled at a cool $256.6 billion, with Bitcoin commanding a dominance rate of 63.3%. It’s like the king still has the crown but is shielded by some storm clouds.
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