- BTC Token value halves within a month due to a sharp sell-off faced near $60000.
- The coin price sustains above the 50 EMA in the weekly timeframe trying to delay the fall.
- The BTC/ETH pair trades at 13.91 ETH with an intraday fall of 5.33%.
BTC Token halts near the 50 EMA in the weekly timeframe. In 2018 the coin price broke the 50 EMA in the weekly timeframe, after the 2017 bull run, leading to the fall in coin prices. It underwent consolidation and failed to sustain above the EMA till 2020. As per the current weekly technical chart of Bitcoin, history is trying to repeat itself as the token price holds near the critical EMA. A failure to push the price back up could result in the price hitting the $20000 mark. Presently, BTC trades at $36,656 with an intraday fall of 5.65%. However, the intraday trading volume of the coin has seen a growth of 9.52%. Investors should carefully observe the price action near the said EMA.
IS BTC TOKEN UNDER THE CORRECTIVE PHASE OF ELLIOT WAVE PATTERN?
BTC token is under an accumulation zone in the daily technical chart, and it is the first resting phase for the price since the rejection from the $60000 mark. The coin price is now almost half of its value compared to one month before.
The consolidation period provides a chance for the bulls to drive the price back up. However, the downtrend implies that the corrective phase has started, and it might be the first wave of consolidation, and the coin price might continue to fall even further.
The crypto asset has failed to halt the downtrend near the $50000 and $40000 levels. As a result, the coin price has fallen almost 30000 points so far. The $30000 mark is the last support, and the prices will dip to the $20000 mark. The levels of $40000 and $50000 now provide resistance to an uptrend.
The coin price struggles just below the 200 EMA in the daily timeframe and resists continuing the downtrend. However, the sloping 50 EMA is falling and threatens the bulls with a Death Cross. It might force start the downtrend by inducing fear among the investors.
The RSI indicator (neutral) implies a neutral trend so far. The RSI slope values at 40 as the slope dips again, indicating the expansion of the accumulation zone.
Conclusion – In the daily timeframe, BTC Token is under consolidation, but the price struggles to sustain above the weekly 50 EMA. Failure to do so will result in the full-fledged start of the corrective phase coupled with panic selling. Investors might find it beneficial to wait till the consolidation range comes to fruition.
Support– $30000 and $20000
Resistance – $40000 and $50000