Bitcoin’s defense of key long-term support for the second time in four days is a positive sign for a potential recovery rally. The leading cryptocurrency by market value fell below $4,242 (low of Wednesday’s inside-day candle) in the Asian trading hours, putting the bears back into the driver’s seat. As a result, BTC fell below the 200-week exponential moving average (EMA) of $4,182 earlier today. The breach of the EMA support, however, may have trapped the bears on the wrong side of the market, as BTC is currently trading at $4,330 on Bitstamp, having clocked an intraday low of $4,061 earlier today. It is worth noting that the long-term EMA was first breached on Tuesday. The subsequent sell-off, however, ended at the 14-month low of $4,048 and prices recovered to $4,500 on the following day. The repeated failure to beat the long-term support indicates the bears have likely run out of steam. As a result, a stronger corrective rally could be in the offing.
Bitcoin (BTC) is down 5.55% over the past 24 hours and is currently trading at $4,256.10 on Coinbase. BTC dominance is at 54% and the total cryptocurrency market cap is currently at $137 Billion.
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