Yesterday, we saw how the bears managed to pull BTC back in the $8,000 region and how the most dominant cryptocurrency fell compared to its previous performance. The Bitcoin news updates showed a loss of momentum, which is why many analysts wonder: Are BTC and other altcoins going even lower in the future?
This is a question that everyone can ask themselves right now. The truth is, Bitcoin (BTC) went from $9,200 to $8,650 and caused the market sentiment to shift in a major way – going from greed to fear once again. This was a correction which came after one of the biggest surges in history of Bitcoin, making the sentiment curious.
So, are BTC and the other coins retracing back to their previous regions?
The truth is, no one knows. The technical indicators show that Bitcoin lost the 200-day moving average (MA) which is a key indicator for a lot of traders and investors relying on it to determine the bear and bull market cycles.
BTC is finding support for the time being but the 200-day MA was lost by the recent correction, causing the entire sentiment to shift from greed to fear. The reasoning for this comes from the historical data which shows that Bitcoin never dropped below this indicator in the previous (but recent) bear market cycles (from 2016 to 2017, for example).
For those of you who wonder and ask “are BTC and other coins going to rise soon,” we can say that the past performance is never a guarantee of future results. That said, the indicators are still forming and this may be a beginning of a bull market cycle. In other words, the price still has to find decent support on the EMAs/MAs which can become the leading indicators in the near future.
When seeing the latest cryptonews and charts, one can notice that the price moved towards important horizontal support and one of the few areas that it must hold in order to sustain a bull market. Speaking of, the price has been moving in a downward channel since its top in June, meaning that it is bearish in the near term but still up by around 187% since December 2018.
Right now, it is essential that the green zone around $8,800 withholds as support and performs as a backtest of BTC.
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