Since yesterday, Bitcoin has begun signaling the possibility for another bearish trend as BTC broke below $8,250 support area. Against the US Dollar, the BTC further gained more bearish momentum, falling below critical support near $8,000 level and the 100 hourly simple moving average. However, the leading crypto is still above the 100 weekly moving average.
At press time, Bitcoin, after surging past 8,100 against USDT on Binance exchange, is worth $8,092.72 with an increase of 0.22% against the US Dollar in the last 24 hours.
Bitcoin Fractal Appears To Have New Support
Bitcoin is currently struggling to consolidate gains around $8,000 resistance area after breaking numerous supports yesterday.
After presenting 23.6% Fib retracement level between the $8,385 high and $7,915 low yesterday, Bitcoin has managed to make a correction above $8,020 levels and even a test on $8,100 resistance area.
This offers more hope that the free falling trend displayed yesterday must have been stemmed as Bitcoin appears to have a new support around $7,900.
100 Week Moving Average Signals another Bull Run
The historical data of Bitcoin dating far back as 2013 shows that Bitcoin fractal once saw a breakout after the testing the 100 weekly moving average, a move preceded by Bitcoin descending below the 100 week MA. While BTC is exhibiting a similar trend, assumptions are that the same move may play out again.
Before the 2017 bullish rally, Bitcoin plummeted freely from its existing peak, crossed the 100 MA and stayed below the line for quite some time.
Afterward, Bitcoin saw a rebound to move above the line and later declined, testing the 100 weekly MA line. That served as the last decline Bitcoin saw before 2017 bullish rally.
Image Credit: Twitter.
Without crossing the line below, Bitcoin returned on the upside trend, and a new bullish run was initiated.
The point at which Bitcoin tested the 100 weekly MA served as a major support level, after that Bitcoin rallied up to its all-time high value $20,000.
The same scenario looks to be playing out as Bitcoin just touched the 100 MA after previously staying below the line. The king of crypto is displaying an identical trend, and 3 out of four expected moves already materialized.
For the fact that Bitcoin managed to stay above the $7,900 psychological support yesterday, we may want to believe that the same scenario may play out and Bitcoin would rally up towards its all-time high. The upcoming halving known for triggering bullish run is another reason to believe that Bitcoin may be due for another bullish run.