Bitcoin Price Prediction: BTC Has 4 Straight Bearish Days And Sits On Top Of 20-day SMA
Daily Bitcoin BTC Technical Analysis
- Bitcoin lost nearly $4,000 in its overall valuation over the last 4 days.
- IOMAP shows that BTC is sitting on top of healthy support barriers.
Bitcoin has lost momentum at the $39,000 psychological level with the bears taking control of the market. Over the last 4 days, the premier cryptocurrency has dipped by nearly $4,000. Let’s take a closer look with technical analysis.
Downside Limited By The 20-day SMA
Bitcoin is currently sitting on top of the 20-day SMA. This recent bearish price action has dipped the relative strength index (RSI) back into the neutral zone. To understand how the Bitcoin price will act now, let’s checkout the IOMAP.
Image: BTC/USD daily chart
When looking at IntoTheBlock’s IOMAP, we can safely conclude that the $35,000 psychological barrier is particularly strong. Previously, 740,000 addresses had purchased 357,000 BTC tokens. If the Bitcoin price breaks below this level, then the next support barrier is at $31,000.
On the upside, however, several substantial resistance barriers are holding the price down. The only viable wall is at $39,000, wherein 600,500 addresses have purchased 347,000 BTC tokens. This level will prove to be very difficult for BTC bulls to conquer. The 4-hour chart also further cements our bearish outlook.
Image: BTC/USD 4-hour chart
As can be seen, the 50-day SMA has crossed over the 20-day SMA to form the bearish cross. This should prompt the price to dip even more.
Mt. Gox Creditors Can Finally Claim Lost Bitcoins
After a long legal battle, Mt Gox creditors have finally dealt with the crypto startup incubator CoinLab. According to Bloomberg reporter Matt Leising, the latter will allow the creditors to claim 90% of lost Bitcoin funds.
The now-defunct Mt Gox exchange was shut down in February 2014 after it suffered the largest cryptocurrency hack in history. The exchange had lost a whopping 850,000 BTC. A total of 137,891 BTC ($4.9 billion) is currently expected to be distributed to the exchange users.
Given that Bitcoin has dramatically appreciated over the past six years, most creditors are likely to cash out their profits. This may exert selling pressure on the whole market. According to an earlier U.Today report, private equity firm Fortress Investment Group started offering creditors $1,300 per Bitcoin in exchange for their claims last February.
CoinLab partnered with Mt. Gox back in November 2012 to serve the exchange's customers in North America. Their collaboration soon went awry. In 2013, CoinLab filed a lawsuit against Mt Gox for allegedly breaching their contractual agreement before countersuing.
BTC Will Jump To These Levels
If the $35,000 barrier gets broken, then Bitcoin price will likely drop to the $31,000 level, which coincides with the 200-bar SMA in the 4-hour timeframe.