Bitcoin Crash: BTC falls almost 10%, but finds support at the 100 day SMA. Will it continue to hold?
Covered:
- What A Difference A Day Makes
- Bitcoin Finds Support At The 100 Day SMA
- If The Price Continues To Fall…
- Closing Thoughts
Bitcoin Crash: What A Difference A Day Makes
It seems like just yesterday (because it was) we were talking about a potential break to the upside for the Bitcoin price. That’s why it’s so disheartening to wake up to find an almost 10% move to the downside instead. What’s even more frightening is that we fell below the downward sloping trendline of support, marking the bottom of the bullish “Falling Wedge” pattern we’ve been tracking.
Bitcoin Finds Support At The 100 Day SMA
This move down for the Bitcoin price ultimately brought us just below the 100 Day SMA (image above, yellow line) before getting a bounce. We currently find ourselves struggling to get back into the Falling Wedge, seeing a rejection at the time of writing, suggesting that our former support may be flipping into resistance.
Should this rejection be confirmed, the possibility of lower prices becomes much more likely.
Bitcoin Crash: If The Price Continues To Fall…
I know you don’t want to see it happen. I don’t either. But we need to be prepared if the Bitcoin price should continue to fall. If the $53,000 USD level breaks, the nice round, even number of $50,000 will be our first line of defense.
This price point is further supported by an upward sloping trendline, beginning from July 20, 2021. If that should break, look to the 200 Day SMA (image below, green line) to come in as support, currently sitting at $45,992.
Closing Thoughts
Unfortunately, we can’t see into the future. The best we can ever do is to prepare for the worst while hoping for the best. Things may not be looking great at the moment, but there is still hope. So, let’s take things one step at a time as these next few days to weeks play out. And always make sure to have a plan in place whichever way it should go.
