Bitcoin Price Showdown: Can Bulls Break 200-Day MA Resistance?
• Bitcoin price faces key moving average showdown 3 weeks after breakout
• Market weakness compounded by Ether staking announcement from U.S. regulators
• Traders eyeing potential retests of $20,000 and even $19,000 to come
Bitcoin Price Facing Moving Average Showdown
The 200-day moving average is coming back to haunt BTC bulls after staying as resistance for over a year. At the Feb. 10 Wall Street open, United States equities dipped further and saw no relief with Bitcoin falling to three-week lows as a result. Risk asset traders had little by way of comfort with the S&P 500 opening down to cross a significant line in the sand left over from late last year. The U.S dollar strength also bided its time with resistance that could potentially be overcome if accompanied by a rebound in relative strength index (RSI) values.
Market Update
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it tracked sideways following a volatile 24 hours of trading. This was due to an announcement from U.S. regulators concerning Ether ETH staking, which forced major crypto exchange Kraken to suspend its staking operations and pay a $30-million fine. As spot price proximity tests the 200-day moving average (MA), Scott Melker has seen cause for optimism on four-hour timeframes when it comes to Bitcoin with potential bullish divergence present along with key support at $21,646.
All Eyes On 200 Day Moving Averages
The 200 day moving average is key trend line that Bitcoin will have to break in order for bulls establish control of the market again and see prices rise higher above this long standing resistance level in 2021 and beyond .
Potential Bounce For Bulls?
Scott Melker sees potential bullish divergence present along with key support at $21,646 which may offer some respite for BTC bulls if these levels can be defended against any further downward pressure on prices expected over the next few days or weeks ahead .
Conclusion
Bitcoin will have to break through the 200 day moving average if bulls are going make any headway amongst current market conditions which have been compounded by recent announcements from US regulators concerning Ether ETH staking operations . Further support may come from Scott Melker’s assessment of potential bullish divergence together with key support at $21,646 but only time will tell whether these levels can withstand further pressure on prices expected over the coming days or weeks ahead .
