Bitcoin Price Analysis: After the price crash where could BTC/USD find support
Bitcoin has taken a tumble on Tuesday just as the 10K level looked to have been a thing of the past. This looks like a bank of orders have been triggered or some potential profit-taking has taken place.
Either way, this leads to traders looking for levels where the market might stop. First and foremost the price is now struggling at the 4-hour 200 period Simple Moving Average (SMA). Even looking back on the chart the 200 SMA seems to be a decent support and resistance zone on this timeframe but the volume on this move lower could be too hot to handle on this occasion.
The intense selling pressure surrounding cryptocurrencies caused Ethereum (ETH/USD) to fall sharply from multi-month highs it set at $253.50 earlier in the day.
The pair erased near 7% in a matter of minutes and dropped all the way to $224 before recovering modestly. As of writing, ETH/USD was down 5% on the day at $235.50.
XRP/USD is attempting a recovery above $0.20 after falling sharply below that level. Cryptocurrencies are falling across the board. The downfall follows a move to the upside experienced early in the week.
Ripple’s token has dipped below the 200 Simple Moving Average on the four-hour chart and is battling to hold onto the 50 and 100 SMA. Upside momentum has all but diminished.