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Bitcoin broke through the $39,000 mark and continues to decline on Saturday morning. Quotes “dipped” under the curve of the moving average indicator (MA) for a period of 50 days, which determines the direction of medium-term trends.
According to the classics of technical analysis, two days of staying below MA 50 is enough to fix the fall signal that fell on the weekend.
Cryptocurrency is the only financial instrument with weekend trading, which means there are no price targets for traders from other markets and low liquidity. As a rule, these days pass in a sideways movement, but in this case, the flat will only confirm the negative signal, which will force Asia to open with Bitcoin sales.
However, low liquidity can play into the hands of the bulls, speculators are able to organize BTC growth on the weekend or on Sunday at no great cost in order to “throw” quotes above the MA (50) by Monday.
If the bears manage to develop Friday’s downtrend, then the new bottom where the movement of Bitcoin will stop will be the level of $30,000. This is the July low of last year, where the bulls can try to draw a “double bottom” reversal pattern.
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