For the past few days, the value of Bitcoin (BTC) has been hovering higher than the twenty Moving Average (MA) and drawing nearer to the moving average as volume continuing to taper off and lower highs were set on a daily basis.
The digital asset began to seem bearish on multiple time frames and it seemed that a downward move was more likely than any other outcome. Once the twelve Exponential Moving Average (EMA) fell below the 26-EMA on Sept. 16, aggressive intraday traders properly predicted a double bottom bounce at $10,075.
As this price was hit for a 3rd time on wednesday amidst the continuation of lower highs, a bearish breakdown was on the cards.
Surely, a lot of traders are panicking given that the Bitcoin is quick approaching the termination point of the descending wedge. {everyone is|most are|everyone seems to be} expecting volatility and fingers are crossed in hopes Bitcoin will create an explosive upside move, that — which taking a view of the bigger picture — is certainly not off the table.
The most recent drop brought Bitcoin price right to the 111 Day Moving Average (DMA), {a point|some extent|a degree} that has reliably functioned as a bounce point since April. 2. The 111 DMA lines up with the $9,600 support and a drop below this point brings BTC closer to exiting the base of the descending wedge at $9,385. This level has also functioned as a support and bounce point for Bitcoin since July 16.
The pullback to the 111 DMA also lines up with the lower Bollinger Band arm and traders will note that the VPVR shows diminished demand below $9,500 till about $8,800. A drop below $9,300 would draw concern as there is minimal buying demand till below $8,600.
