Bitcoin futures took a beating over the weekend, with the contract down about 8% when trading resumed on Sunday afternoon, marking a roughly 29% decline from November’s all-time highs. The cryptocurrency’s technical picture has taken a much more bearish tint since Friday’s close across the board. This weekend’s drubbing now means /BTC has broken below the 50,000 level and crossed below the 200-Day Simple Moving Average. It also snapped an upward trendline connecting the lows from July and September, as well as the old resistance from the August highs.
RSI continues to fall with price suggesting bearish momentum, and the indicator is now just above the oversold area, so traders should watch for a crossover into this region if price breaks downward again. A product as volatile as bitcoin can have some large distances between major support and resistance. If prices keep dropping, watch for potential support first around the yearly minus-one Standard Deviation Channel near 43,600, and then the only remaining supportive major moving average in the 252-Day Exponential Moving Average around 44,890.
Key price levels to watch for bulls first include the 200-SMA around 49,600, which has flattened noticeably and actually began trending down last week, and the 63-EMA near 55,600.
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