This unexpected drop comes after Bitcoin soared to $ 9,188 – slightly higher than the $ 9,150 target that many traders consider the king to achieve before attempting to push up to $ 9,300.
The traders had predicted a failure at $ 9,150 or $ 9,300 and at the time of writing, the daily time frame shows the price holding above the 20-MA of the Bollinger band indicator at $ 8,858.
If BTC fails to regain its support of $ 8,900, the price can drop to the 200-day moving average at $ 8,695 and below that to the regular support tested at $ 8,400 – the domination of 128-DMA.
According to Michaël van de Poppe, an analyst at CoinTelegraph, a scenario of a fall in price after BTC fails to $ 9,150 will involve a failure to keep the 21-week moving average at $ 8,666.
“Losing that area and we will see the momentum and retesting $ 8,200 or less is a possible scenario,” Van de Poppe explained. However, he emphasized that from a macro perspective, the market structure of Bitcoin is more inspiring than worrying. He said:
“The market has seen a big rally in the first weeks of this year, so a retreat and correction is conducive to the continued sustainability of the market.”
In the short term, holding the zone between the 200-DMA support and $ 8,900 is important or can retest the support of $ 8,400. A weekly close below 21-WMA ($ 8,676) will cause concern, as this is closely monitored by many traders.
But for now, Bitcoin has not yet created a lower low below the support of $ 8,000, so a short consolidation phase that resulted in a retest of the $ 9,150 resistance seems more likely than falling below. key support levels.
When Bitcoin price pulledback, the majority of the 20 largest altcoins by market capitalization followed the decline, seeing losses of 3% to 5%. Bitcoin Cash (BCH) has decreased by 4.16%, Litecoin (LTC) has lost 2.67%, Binance Coin (BNB) and Tron (TRX) have lost 5.03% and 5.78% respectively.
The total capitalization of the entire cryptocurrency market is currently at $ 256.6 billion with Bitcoin's dominance rate reaching 63.3%.
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According to CoinTelegraph
Translated by ToiYeuBitcoin