Bitcoin (BTC): Why This Breakdown Could Trigger a Move Toward This Direction
- BTC plunged beneath its crucial support area after a massive bearish inclination.
- The token’s MVRV ratio and development activity printed a sharp decline.
Bitcoin’s previous rebound from its crucial support zone revives the hopes of a short-term recovery. Nevertheless, its latest fall beneath the daily 20 Exponential Moving Average and 50 Exponential Moving Average confirmed massive selling superiority.
The price action dipped into a somewhat low liquidity territory as it entered high volatility following the latest pullback. While publishing this blog, Bitcoin changed hands near $16,818.49, plunging by 3.65% over the past 24 hours.
Bitcoin Hovered Around a Crucial Trend-line
The king crypto noted a massive rebound from the support of $15.9K (during this publication). As a result, bulls target the shackles of the ceiling at $17.6K. The trend-line resistance might be critical to influencing the crypto’s trajectory.
Bulls inflicting a closing beyond this mark may see BTC stopping the bears from hitting new lows. Such tendencies would have the initial resistance at $17.6K. The asset dipped into the high volatility region after pulling a 180 from the resistance at $21.2K.
A sustained spot beneath the trend-line resistance might catalyze a drop toward the foothold at $15.9K. The bearish crossover on the 20-50 Exponential Moving Average increased the probability of bears retaining their immediate market dominance.
The RSI (Relative Strength Index) and the Signal line plunged beneath the zero levels, revealing increased bearish superiority within the last few sessions.
Declines Development Activity and MVRV Ratio
BTC’s development activity endured a sharp plunged over the previous month, following its somewhat high levels during October sessions. Moreover, the asset’s 30d MVRV ratio dipped well beneath the zero level, depicting the sellers’ superiority. This ratio has never plunged to such lows since May last year.
Nevertheless, targets would stay as discussed. Moreover, traders/investors should assess macroeconomic facets impacting the broader cues. That can help heighten the probability of profitable bets.
The crypto space remained in a bloodbath during this publication, with nearly all assets recording losses on their 24hr charts. While publishing this blog, the global cryptocurrency market cap stood at $833.74 billion, dropping 2.05% in the past 24 hours.
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