Bitcoin Price: Investors HODL BTC at Support After Bearish Price Decline

Bitcoin Daily Chart – Source: Tradingview.com

After consolidating for the past two days, Bitcoin has made a bearish movement towards a key support level today.

A drop below the support level at $3353 would likely result in price proceeding to form a new 2019 low.

Any previous tests of the level have typically found support from buyers, but the price is now staying closer to the level showing that traders are more comfortable with such low valuations.

Bitcoin Hourly Chart – Source: Tradingview.com

One bullish factor which can be noted is that price is forming a bullish divergence between price and RSI on the hourly chart.

A bullish divergence is a trend reversal pattern and takes place when the RSI forms higher lows despite price forming lower lows.

This shows price continuing to decrease despite selling pressure falling.

Bitcoin Weekly Chart – Source: Tradingview.com

Overall the outlook is far more bearish than bullish.

The key level being tested is the 200 simple moving average on the weekly which is a key consideration for many analysts in determining whether price prospects are bullish or bearish.

A break below this point may result in significant bearish movements.

Key Takeaways:

  • Price makes bearish movements to key support level.
  • One bullish factor is a bullish divergence forming between price and RSI on the hourly chart.
  • Price is testing the 200 SMA on the weekly chart. A break below this point would likely be extremely bearish for price.

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Bitcoin Price: Investors HODL BTC at Support After Bearish Price Decline was originally found on Cryptocurrency News | Blockchain News | Bitcoin News | blokt.com.

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