Bitcoin News: The situation is not looking good for cryptocurrencies. All bullish attempts can be met by investors at some level, but the upward trend cannot be sustained. While the moving averages did a great job as support indicators for Bitcoin during the uptrend until mid-April, this was when the climb stopped for crypto.
For some other cryptocurrencies, the uptrend continued until mid-May. In fact, these were a sign that Bitcoin was going to see hard times ahead. China has opened up to the Bitcoin and cryptocurrency market in general and has banned Bitcoin mining from certain provinces.
As a result, the crypto market collapsed and Bitcoin lost 50% to 75% of its value, dropping to $30,000. This massive support level continued for a month until mid-June when the second wave of selling came, pushing cryptocurrencies to new lows.
What effects have we seen in Bitcoin?
Bitcoin dropped below the $30,000 level to $29,000. This level is still considered part of the $30,000 support area. Later, the price bounced off this level and climbed above $36,000. However, even the 20 SMA (grey), which turned into support especially with the help of the 50 SMA (yellow), could not rise above the moving averages, causing the price to go down. Even the 20 SMA (grey), which turns into support with the help of the 50 SMA (yellow), is pulling the price down.
Stochastic has turned into overbought and now just like Bitcoin price it is moving in the opposite direction. So, the bearish continues and the MAs continue to push Bitcoin downwards, clearly indicating the existence of a downward path. Although investors seem to be afraid to hold onto their holdings for too long when Bitcoin’s value approaches $30,000, one cannot test for the certainty of this situation.
Bitcoin’s movements should continue to be watched
However, we should watch this latest bearish trend to see if sellers can break above $20,000 or if buyers can break above the 20 and 50 SMA from here. We should continue to watch this latest downtrend to see if sellers can push Bitcoin below $20,000 or if buyers can push Bitcoin price above the 20 SMA and 50 SMA resistance levels.