Bitcoin falls away from the 200 day MA and test 50% retracement

Bitcoin yesterday, and again today, has movedbelow the 200-day moving average (MA) at $83,370, signaling increased bearish momentum if the price remains under this key level. Staying below the 200-day MA keeps the sellers in control.

The price today is also testing the 50% retracement level of the rally from the August 2024 low, a crucial support zone. On February 28, BTC reached a low of $78,187 – below that level – but quickly snapped back higher. Today’s session has seen a low of $79,170. If this level fails to hold, the next downside target is the 61.8% retracement level near $72,535.

On the upside, Bitcoin needs to reclaim and hold above $83,370 to shift momentum back in favor of buyers. A move above this level could open the door for a retest of the 38.2% retracement level near $86,600. However, failure to reclaim the 200-day MA could keep sellers in control, increasing the risk of a deeper correction.

This article was written by Greg Michalowski at www.forexlive.com.