Bitcoin (BTC) returned closer to $40,000 on Thursday as $44,000 resistance proved too much for bulls to overcome.
Buying another dip
The pair had topped $44,450 on Bitstamp before the retracement kicked in, this seeing local lows of $41,780.
While disappointing for those hoping that the worst of the pullback was over, analysts appeared unsurprised by the move, which they said could resolve via a fresh test of $40,000 support.
Popular trader Pentoshi also appeared to get his wish—BTC “sweeping” lows below $42,000 in what he had previously identified as a prime opportunity for entry. He added that $46,000 could be next.
Looming large, however, was another “death cross” chart construction on BTC/USD, a classic signal warning of bearish conditions.
As Cointelegraph previously reported, a death cross occurs when the declining 50-day moving average crosses under the 200-day moving average. The feature is somewhat rare but has not always resulted in bearish behavior thereafter.
Read more at: CoinTelegraph
“Given the current fundamentals of Bitcoin and the size and consistency of the downtrend over the past two months, we do believe that a move out of the range to the upside is the most probable outcome eventually.”