Bitcoin Buyers Face Stiff Resistance At 200-day SMA

It was a volatile day for bitcoin, as its near-term price actions suggest considerable price swings amid signs indicating bitcoin buyers will likely face stiff resistance around the 200-day simple moving average -$44,800.

At the time of writing this report the pioneer crypto asset traded around $43,400 on the FTX exchange, with $36.1 billion in daily trading volumes. For the day, bitcoin dropped by 2.19%.

Recent price patterns show Bitcoin Bulls are still in charge, as the 20-day exponential moving average ($39,200) and the relative strength index (RSI) are near the overbought zone.

A downward trend below the 20-day EMA will negate this positive view. The price could drop to $36,500 as a result.

It is possible that the most popular crypto asset could continue its upward trend, which currently targets $50,000.

It will also be the first sign that the buyers are losing their hold on the market if $42,451.67 breaks and closes below the breakout level. Therefore, the possibility of a fall to $4000 may arise.

While institutional demand increased and crypto assets were widely adopted, the upward momentum around the grandfather of crypto assets remains intact.

This indicator shows the monthly change in net position of all exchanges when coins flow in (green) or out (red).

Crypto analytic firm, Glassnode reported that coin outflows from exchanges peaked in November 2020, and witnessed an extreme outflow of coins in the last week. During the past week, bitcoin outflows topped 100k per month.

Holdings on exchanges have now returned to the 2021 lows of 13.2% of the circulating supply. The price action here is a near full retracement of the significant inflow volume that occurred during May’s sell-off.

This article was originally posted on FX Empire