Bitcoin price (BTC) fell 5% today to a new weekly low at $8,660, a point which is also below the 200-day moving average which has been acting as support since reclaiming it in the final week of October.

Almost all other crypto-assets have also suffered a valuation loss against the U.S. dollar, but there has been some resilience shown in both Ether (ETH) and EOS, which have continued to outperform Bitcoin over the last week.

Source: Coin360

Why BTC broke down from $9000

Bitcoin has been trading hard up against historical weekly support and resistance at $9,550.  This also coincided with the 100-day moving average (DMA), unable to establish any kind of sustained attempt to break above. 

The pinch between the 100-DMA acting as resistance and the 200 as support, led to a failure and an immediate drop through the volume gap where price doesn’t have much local history.  The 50-DMA and the previous range high have subsequently come to support price above the 61.8% retracement from the move up to $10K from the mid $7K lows.

This is a technical trading area, which will be of interest to some profit takers and buyers. If Bitcoin is to maintain a move higher in the near term, we should expect to see BTC attempt to retake the previous support at $9,000. 

BTC USD 4-hour chart. Source: TradingView

This will be an important weekend for Bitcoin, which could easily lead to further volatility. Reclaiming the $9K range is a clear objective for the bulls over the weekend. Otherwise, a more extended period consolidating likely lies ahead in the $8,000s.

Reference: Cointelegraph

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