Bitcoin’s own value loss in that time exceeds $2,000 as it fell from above the $10,000 line it had managed to cling to for several weeks after failing to breach $14,000 in the height of summer. Some relief over what has the potential to be a tumultuous week may come from the calculations of the 50 exponential moving average (EMA) indicating support to prop bitcoin up at around $7,850. For many long-term traders in the ten-year-old digital asset, the current pattern looks oddly familiar as it echoes the curious price action of 2017 when a dramatic fall from an all-time high of $20,000 saw a 70 percent collapse in price.
The key now is to wait and see if the current price has fallen sufficiently to trigger some buying activity. If it remains above the anticipated resistance around $7,900 then that would indicate the interest is there and a recovery can build.
If it isn’t creating interest, and traders are hoping for a deeper plunge, then the possibility of further drops into the $6,000 range come into view.
However, many observers are reasonably optimistic. Mati Greenspan, for instance – senior analyst with eToro – remains hopeful that the market can arrest its current slide.
“We can probably expect some strong support to come in around $7,000 per coin,” he said.
“Of course, as we know, past performance is not an indication of future results and anything can happen really.
“Most likely the best outcome for bitcoin would be some price stagnation – a nice range between $7k and $10K to last the next year or so would likely do wonders for the viability of the network. What is clear is that we are now at some sort of crossroads.”
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