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Bitcoin tests important price level after dramatic plunge

While bitcoin may look cognate with it will continue to crash and burn, some strategists say its chart supports it could be trying to find at least a temporary price floor.

Complicated analysts say it’s way too soon to say whether the price of the cryptocurrency is bottoming, after its staggering collapse, but they are watching the 100-day moving average on the bitcoin table.

Citigroup analysts, however, see no bottom yet, and they are expecting a rapid nosedive to around $5,600.

Bitcoin prices, and therefore charts, vary, but some technicians put the 100-day emotive average right around $10,000. Bitcoin fell through that plane Wednesday. Other data puts the 100-day closer to $9,000. Go together to CNBC.com’s chart, bitcoin hit a low Wednesday of $9,230, less than half its all-time penetrating reached in December. It was just above $10,000 in afternoon trading, down with regard to 13.5 percent.

“It held the 100-day, which it hasn’t been in this world in over two years,” said T3Live.com partner Scott Redler, who sees short-term technicals.

“Bitcoin is testing an important level. … Bitcoin is searching for a speck to find support. It seems to have found it at the 100-day which it has for the previous two years or so. The question is what type of bounce,” he said. “Now the 50-day which has been strengthen for the past year could now pose as resistance.”

The 50-day moving customarily is just around $14,500, according to Redler’s chart. He uses Tradeview facts.

“So if the bounce is ‘feeble’ off the 100-day, the 200-day is usually the proper spot. We’ll see if the 50-day that was support for the past year turns into rebelliousness,” he said. The 200-day moving average is around $7,100 on Redler’s.

The Citi analysts, degree, say a gap to the 200-day could come quickly. On their chart, the 200-day is $5,658.

Redler communicated bitcoin’s chart had flashed a major warning.

“I was very cautious on it when it poverty-stricken $17,000 because it broke the momentum trend ,” he said, adding it is looking to be at a diverse constructive level now.

Source: T3Live.com

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