Since the start of the week, Bitcoin price has rallied from a retest of lows around $7,700 to $8,700 – gaining over $1,000 in value during the short timeframe.
The rise in Bitcoin price was also yet another retest of the asset’s 200-day moving average, and what happens from here could determine the trend ahead. Will Bitcoin return to its bull market, or will the leading cryptocurrency by market cap fall further to find new lows, putting any chance at a bull market in jeopardy?
Bitcoin Price Retests Recently Lost 200-Day Moving Average
Throughout the entire 2016-2017 bull run, Bitcoin price was supported by the 200-day moving average and didn’t close a candle below it. It was among the few indicators giving crypto investors hope that the recent triangle formation would break upward, causing Bitcoin to continue on its bullish rally.
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But the recent triangle formation broke down instead, and much to the fears of bullish crypto traders, the 200-day moving average was broken below, with many consecutive candle closes below it. Bitcoin price made a pair of reattempts to get through it but was ultimately rejected