Over the last 7 days, Bitcoin price has continued to sell-off, posting -15% losses. BTC is having a difficult time creating a shift in overall sentiment. When we take a look at current technicals, what could cause Bitcoins price to continue selling-off to $9,200 levels?
At the time of this reporting, Bitcoins price is hovering around $10,109. Over the last week, BTC has experienced bearish price action, and has fallen -15%. The weak sentiment has caused altcoins to follow protocol, as most of the top altcoins by market capitalization are down significantly. Bitcoins current market capitalization is $186,730,375,392. Despite the sell-offs, Bitcoins market dominance has increased to 57.5% over the last week. During market uncertainty, Bitcoins dominance has increased as investors liquidate altcoin holdings and deploy the capital into Bitcoin.
Cryptocurrency 7 Day Performance
- Bitcoin: -15.1%
- Ethereum: -29.3%
- XRP: -19.3%
- Chainlink: -26.9%
- Bitcoin Cash: -23.8%
- Cardano: -27.2%
- EOS: -21.5%
Bitcoin Technical Analysis
In a report shared by Visionary Financial on September 4th, it was outlined that Bitcoins price needed to hold $10,600 levels to re-gain bullish momentum. We believed that rejecting $10,600 levels in the short term would be bearish for BTC. Bitcoin has failed to recapture $10,600 resistance and has since fallen $ -500.
Why Could Bitcoin Price Test $9,200 Support?
For the last couple days, the 100 day moving average has been on watch. As we can see from the chart below, BTC is having a difficult time maintaining prices above the 100 day moving average. If we look at historical price action over the last year, Bitcoin has only rejected the 100 day moving one time ( March 2020 ).
The last time Bitcoin saw this 100 day moving average rejection, it resulted in a massive sell-off. In March, Bitcoins price quickly went from $8350 levels to a low around $4841 ( -42% sell-off ). This is why many traders will be watching the 100 day moving average this week. You could start to see many more sell orders lining up around $10,000 levels.
The US Dollar Continues To Be On Watch
For a while now, Visionary Financial has been stressing the importance of the US Dollar against Bitcoin. Bitcoins price has historically done well when the US Dollar struggles. After the Dollar index made yearly lows in August, it has since built upward momentum. The Dollar rally is best explained by recent positive economic data regarding employment, manufacturing, and PMI numbers. This has put additional pressure on Bitcoin the last couple weeks. If the Dollar continues to rise, this could be a bearish sign for BTC. We are seeing a similar setup to March price action. When the Dollar index surged, Bitcoins price saw heavy selling, quickly falling from $9,200 levels to $4,800. In addition to economic data, the Dollar is gaining traction in an environment where stocks are selling off and investors are heading to safety ( cash ).
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