The price of Bitcoin hit a monthly low
Bitcoin price has been in a downtrend since Monday. At the time of writing, the price of Bitcoin has already dropped by 8.60% for the week. BTC/USD is on the verge of returning all profits generated from Coronavirus from $ 8,303 to $ 10,489. During the decline, the price fell below the main bullish trend line of support at $ 9,580, the $ 9,000 level and the 200-day SMA ($ 8,800). The BTC/USD pair hit a monthly low of 8,555 earlier this morning and now traders are struggling to keep the price above $ 8,500 support and 200 SMA.
The current fall is mainly due to the rejection by the SEC of another Bitcoin ETF. The US Securities and Exchange Commission on Wednesday rejected the proposal for a Bitcoin Exchange Fund (ETF) submitted by Wilshire Phoenix. The regulator cites Wilshire Phoenix’s failure to prove that the Bitcoin market is immune or sufficiently resilient to market manipulation.
The altcoins have also sunk, with many coins in the top 20 having suffered double-digit losses in the last 7 days. Ether (ETH) pulled back 14.12% to trade around $ 225. This is a staggering turnaround given that the digital asset was trading at $ 286 less than 2 weeks ago. Litecoin (LTC) lost 13.61%, EOS fall with 10.45%, and Ethereum Classic (ETC) dropped 13.49%. Surprisingly, Chainlink (LINK) rose 4.71% yesterday and Tezos (XTZ) gained 3.73%.
The total market capitalization of cryptocurrencies now stands at $ 246.8 billion, with the Bitcoin dominance index rising to 64.4%.
Where can BTC/USD find some support?
Now when the market has taken out some key levels, let’s see where we can find support.
The BTC/USD pair appear to respect Fibonacci adjustments. So, keep an eye on the 61.8% Fib correction on the rally from $ 8,303 to $ 10,489 at $ 8,015.00. This is obviously close to the psychological level of 8,000. For that reason, this support is key. However, if the bulls fail to protect $ 8,000, there is a chance of a further decline to the $ 7,000 and $ 6,800 levels.
Before that 8,500 is also a good level of support as the price has been struggling a lot there in the past.
On the upside, the first resistance is close to $ 9,000. Successfully daily closing above the $ 9,000-9,020 region is likely to set the tone for another increase in the coming days.
The RSI indicator is in the oversold zone on daily chart and is still maintaining a downside slope. And that means that sales activity is still high, ignoring the condition of oversold region.
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Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.