RATE Group | Bitcoin Faces First Close Below This Key Long-Term Support in 2.5 Years
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Bitcoin Faces First Close Below This Key Long-Term Support in 2.5 Years

25 May Bitcoin Faces First Close Below This Key Long-Term Support in 2.5 Years

Posted at 10:30h in Bitcoin News by

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Bitcoin risks closing below the 50-week moving average (MA) – an important long-term support not breached for over 2.5 years.

With the bears already on the offensive following the recent sell-off, prices are likely to suffer if bitcoin closes on Sunday below the key support, currently seen at $7,611.

More worryingly for the bulls, since the cryptocurrency has not traded below the 50-week MA since October 2015, acceptance below that level would only add credence to the argument that the long-term bull run has ended.

Weekly chart

As seen on the chart above, the long-term moving average had acted as a strong support in the first quarter. BTC found strong bids in mid April following the repeated failure (marked by a circle) on the part of the bears to penetrate the 50-week MA.

The rally from the 50-week MA to $9,990 (May 5 high) reinforced the moving average as a strong long-term support. Hence, a downside break would raise the odds of a slide to fresh 2017 lows below $6,000.

As…

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