Bitcoin Price Drops to $100K – But for How long?

The key point is:

BitcoinBTCAfter failing to break the $109,000 barrier on both Sunday and Monday, ) fell to $105,250. Bitfinex market analysts stated in a report that Bitcoin could have formed a local top You may go through a phase of consolidation. 

Examine the graphs to see what levels of support and opposition you should be watching for.

Bitcoin price prediction

Bitcoin was sandwiched by the downtrend and moving averages. It could be a sign of a potential range extension in the coming days.

Moving averages that are upward-sloping indicate a slight advantage for the bulls. However, the relative strength indicator (RSI), which is near midpoint, indicates a lack bullish momentum. BTC/USDT may fall below moving averages if price falls and stays below them. This move keeps the pair within the pattern of a bearish triangle descending.

This bearish set-up will become invalid if price rebounds from the moving averages to rise above the trendline. The pair could be pushed to the neckline in the reverse head-and shoulders pattern.

Related: Bitcoin targets $200K as profit metrics enter ‘cautiously optimistic’ zone

This pair is below its moving averages. It indicates that short-term traders have booked profits. The buyers are going to try to hold the $104,500 mark because, if not successful, they could see the pair sinking to $100,000 psychological support.

First, a break over the 20-day moving exponential average (EMA) is a sign of strength. This opens the way for an uptrend to reach the downward trend line where bears will likely step in. The pair could challenge its all-time record high of $111,980 if buyers penetrate the downward trend line.

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.