In early March, Bitcoin succeeded in breaking out above a diagonal resistance line formed by previous highs, but it proved to be nothing more than a ‘fakeout’. What stumped the cryptocurrency’s continued rise was a failure to break an earlier high set on 28th Jan. Bitcoin’s price slumped $3000 before taking a good look at the 200 Day Moving Average (DMA) and initially this safety net appeared to catch the fall. However, yesterday’s heavy move downward has left Crypto-followers twitchy.
Although there is some support offered by a reasonably established trendline at around $7000, failure to hold above $8000 is likely to see a retest of the $6000 low printed in early February.
Author: Stuart Langelaan
