Bitcoin Tumbles to $64,000 Before Initiating Recovery
The price of Bitcoin (BTC) experienced a surge, reaching $73,525 on October 29.
Long-term forecast for Bitcoin: bullish
However, the BTC price has now dropped to a low of $68,141, still maintaining a position above the 21-day moving average. Should the price fall below the moving average lines, there is a potential for further decline. A breach of the 21-day SMA support could result in Bitcoin dropping to a low above the 50-day SMA, specifically around $64.
If Bitcoin retraces and remains above the moving averages, it is anticipated to continue its positive trend. Currently, Bitcoin is experiencing a bearish phase, hovering just above the 21-day SMA support.
Reading the indicators for Bitcoin
Bitcoin has fallen below its moving average lines, but should it find support above them, the leading cryptocurrency is likely to rally. However, if the cryptocurrency drops below the 21-day SMA, it remains vulnerable to further losses. On the 4-hour chart, the Bitcoin price has fallen beneath the moving average lines.
Technical indicators:
Key Resistance Levels – $70,000 and $80,000
Key Support Levels – $50,000 and $40,000
What lies ahead for BTC/USD?
The 4-hour chart for Bitcoin shows a decline below the moving average lines. BTC is expected to test its previous low at $67,000. If the current support level is broken, the downward momentum could carry Bitcoin further down to $64,000.
Please note that the above analysis and forecast represent the author’s personal opinions and are not a recommendation for buying or selling cryptocurrency. CoinIdol.com does not endorse these opinions. Readers are advised to conduct their own research before making any investment decisions.