Bitcoin (BTC) has failed to clear the critical resistance at $17,000. The 10-day moving average has turned south after 22 days of holding as support. The MACD is on the verge of a bearish crossover, which could suggest that the bulls are losing control. These three reasons indicate that BTC might be heading below $16,000 soon.
Bitcoin (BTC) prices have failed to clear the critical resistance at $17,000. As a result, it is likely to fall further.
Bitcoin Hovering Under $16000
The short-term outlook for Bitcoin (BTC) has turned bearish as the cryptocurrency has failed to break out of its current trading range. In fact, BTC/USD fell below the key support at $16,000 on June 5 and it remains in a downtrend since then. The downward movement was initiated by a sharp drop in volume activity and weak fundamentals which supports our view that BTC will continue falling towards critical support levels at $13,500 and $12,500 in the near term.”
The 10-day moving average (MA) has turned south after 22 days of holding as support.
The 10-day moving average is one of the strongest indicators in technical analysis. When it holds as support or resistance, it typically holds for many weeks or months. You can see that the 10-day MA held for more than two weeks before turning south on Feb. 7th, and then again on Feb. 15th and 16th, before today’s break lower on Feb. 19th (the green line).
But there are exceptions to every rule; the 10-day MA doesn’t always lead the trend. In fact, sometimes a break below this indicator signals that a bear market is coming—and we’ve seen this happen time and time again over Bitcoin’s history.