Bitcoin Price Fails to Break Above 200-Day Exponential Moving Average. Will $52,000 Be the Next Target?

The cryptocurrency market saw reduced volatility over the weekend, with Bitcoin Price Bitcoin Stabilizes Above $55,000. Easing supply pressure earlier this week allowed altcoins to find strong support and establish a local floor. However, the recent 700 BTC transfers by the German government, coupled with Bitcoin’s struggles to break through crucial resistance, have raised concerns about a potential prolonged correction.

Read also : Bitcoin Price Analysis: How the Bull Flag Defends BTC’s $1 Trillion Market Cap

Bitcoin Price Faces Supply Pressure as German Government Moves 700 BTC

Bitcoin Price | Tradingview

Over the past 4 months, the Bitcoin The price action has been mostly sideways with a slight decline on the daily chart. This consolidation is visually traced with the formation of the flag pattern as the divergence trendlines provide major resistance and support.

While in theory, the bullish movement supports the continuation of the uptrend, the divergence trendlines indicate market uncertainty and a potential breakdown of the intact support. Amid the recent market, BTC price fell from $71,959 to $53,500 on Friday, representing a 25.5% loss.

Interestingly, the downward pressure reversed precisely at the pattern’s lower trendline, but failed to hold above the 200-day exponential moving average. This trend-defining slope serves as a major resistance for Bitcoin buyers, and a failure to break above it could strengthen the continuation of the downtrend.

Read also : Bitcoin Spot ETFs Saw $143 Million Inflows on Friday, Are Institutions Buying the Dips?

In addition, the German Government transferred 700 BTC, worth approximately $40.55 million, to an anonymous address identified as 139PoP…H7ybVu, according to Arkham.

This transaction, made at 1:07 UTC+8, could be linked to a deposit address of an institution or an OTC service. The German government’s current Bitcoin holdings amount to 39.826k BTC, valued at approximately $2.31 billion.

So, the Bitcoin The cryptocurrency’s price fell 1.48% today to trade at $57,390, while the market cap plunged to $1.13 trillion. If the supply pressure from the fall of Mt. Gox and the US and German governments continues, the coin’s price could dip below the lower trendline.

The post-breakout drop could send Bitcoin’s value plummeting towards support at the psychological $50,000 level.

Technical indicator

• ADX: The ADX value at 38% indicates an excessive fall which may favor a sideways action before resuming the corrective trend.
• EMA:A potential bearish crossover between 50- and 100-day rates Exponential Moving Average could accelerate pressure on supply

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Frequently Asked Questions (FAQ)

The 200-day EMA is a technical analysis indicator that shows the average price of an asset over the last 200 days, giving more weight to recent prices.

The ADX, or Average Directional Index, measures the strength of a trend. A value above 25 generally indicates a strong trend, while a value below 20 suggests a weak trend.

A flag pattern is a continuation pattern that resembles a flag on a flagpole. It indicates a brief consolidation before the previous trend resumes.

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