- Bitcoin recovers over the $9k mark after a brief dip
- BTC bulls prevent a dip below the 200-day moving average
- Bitcoin continues to show signs of weakness
Bitcoin News Today – The past two days have been pretty rough for the world’s most dominant digital currency. After showing some signs of bearishness, the price of Bitcoin broke beneath the $9k mark a few hours ago before amassing enough traction to return over the $9k mark.
The downtrend pushed the price of the digital currency towards its 200-day moving average, and the bulls have so far defended that level. Historically, the 200-day moving average has overseen both downtrends and uptrends, with breaks over this previously igniting rallies while breaks below it have been terrible.
Bitcoin Is Showing Signs of Bearishness
The 200-day moving average is still at severe risk of being lost, as the digital currency continues to show signs of bearishness. According to an analyst, Bitcoin might break below that level soon, as it breaks below a major technical pattern. At press time, the world’s largest digital currency by market cap is trading just slightly over the $9k mark after a decrease of about 5 percent over the past day.
This marks a considerable decrease from the recent highs of $9,800 that the digital currency tested yesterday before this decline. It seems like the recent price of the digital currency is driven by two basic factors.
Two Major Factors Driving the Bitcoin’s Recent Price Action
The first major factor is the sequence of rejections that the digital currency encountered at the $10k range over the past few months. None of the rejections were enough to trigger any sustained downtrend. However, they all indicated that the digital currency lacked sustainable buying pressure.
The second major factor was the recent 50 Bitcoin transaction stemming from a long-dormant Satoshi-ear wallet from 2009. At the spread of the news, many traders said that the wallet belongs to Satoshi Nakamoto – the pseudonymous creator of Bitcoin. However, data later revealed that the wallet does not belong to him, and it likely belongs to an early Bitcoin miner or adopter.
This created some sort of panic, which pushed the price of the digital currency downwards. The technical damage has already been done and Bitcoin is on the verge of returning to the $8k region.
Will Bitcoin Break Below the 200-Day MA?
The decrease in price pushed BTC towards its 200-day MA briefly. The 200-day MA is presently within the upper-$8k zone, and the bulls prevented declines below that level during the recent sell-off. Many analysts are closely watching how Bitcoin reacts to this level. A prominent crypto analyst also said that one technical indicator appears to indicate that the digital currency is likely to plunge below this level in the near term.