The arguments for a big market correction are gaining strength. As Bitcoin approaches another heavy resistance barrier buying pressure is likely to diminish as previous charts have shown. If and how far it will fall remains the big question this week.
Bitcoin Approaching 50 Week MA
When Bitcoin broke through the 200 day moving average there was a lot of optimism for a move up towards $6,000. However another big barrier stands in its way in the form of the 50 week moving average which is aligned with further horizontal resistance.
According to trader and analyst Josh Rager this could create a pivotal point for Bitcoin which has previously been held down by this technical indicator;
$BTC history says price tops no higher than $5,634 before a pullback
Previous bear market $BTC was held down securely under the 50-Week MA and current 50 MA sits near $5,634
Add to this horizontal resistance near $5,559 & you've got a very strong case for a potential pullback pic.twitter.com/C7LnIm7u6B
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