Bitcoin Struggles to Hold the Rally: Analysts Turn Bearish

Bitcoin

Cryptocurrencies have been struggling over the past few days with increased scrutiny and piling up of bearish signs. Bitcoin, for instance, is nearing a turning point, and according to popular cryptocurrency analyst DonAlt, it is closer to testing support levels of $6,700.

Bitcoin Drops Below the 50-Day Moving Average

The signs are indicating that Bitcoin is headed for more losses after breaking below the 50-day moving average. This is an indication of the end of the recent rally that brought the world’s largest crypto close to $14,000 at the end of last month. The digital coin has fallen below the GTI Vera Band indicator’s lower limit, and as of the last session, BTC was trading at $9,475.

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The analyst measured Bitcoin’s current bias on a three-day span on Monday, which provided clarity on the digital coin’s price movement showing that it went past the 3-D pennant structure but on the downside. Bitcoin has failed to enter the range, and this further asserts the possibility of extending its downward trend.

>> Bitcoin Price to Reach $55K? Joe Kernen Suggests So!

Price Analysis

As the coin deepens its plunge, DonAlt has provided three major support areas. The first region is between $8,150 and 8,850, which has been a strong resistance level for Bitcoin for multiple occasions this year. Also, he has indicated that the second support area will be in the region of $6,700 because it has an account of experiencing enhanced selling pressure. Judging from how the coin performed last year at the $6,700 support level, prices are likely to be sent higher at more than 79% and 51% respectively for the two occasions.

The cryptocurrency market is reacting to various issues happening, such as greater regulatory scrutiny on digital coins, which will likely become a major talking point as the US approaches its 2020 elections. Other developments that have sent the prices down include the fallout from launching Facebook’s (NASDAQ:FB) stablecoin, as well as the ongoing trade war between the US and China.

Featured image: DepositPhotos © timbrk

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