- Bitcoin pulls back after rejection at 200-day SMA
- Decline ceases at the 50-day SMA
- Momentum indicators point to more losses
BTCUSD (Bitcoin) had been forming a structure of higher highs and higher lows since its bounce off the September bottom of 24,915. However, the price has been on the retreat in the last few daily sessions after being repeatedly repelled by the 200-day simple moving average (SMA).
If selling interest intensifies and the price crosses below the 50-day SMA, the September support of 25,980 could act as the first line of defence. Piercing through that floor, the digital coin might then descend towards the September low of 24,915 before the June bottom of 24,750 gets tested.
On the flipside, bullish actions could propel the price towards the September resistance of 27,490 ahead of the recent peak of 28,592. Even higher, the crucial 30,000 psychological mark could curb further advances. A jump above that zone may pave the way for the April peak of 31,064.
Overall, BTCUSD appears to be undergoing a correction, but the 50-day SMA proves to be a tough hurdle for the bears. Hence, a break below the latter could trigger a steep decline.
