Several weeks ago, Bitcoin plunged 50% from it highs. The Bitcoin hit as low as $30,001 (which price hasn’t seen since January) before bouncing and eventually hitting $40k several days later. But this pullback was different…and I’m not even talking about things from a technical standpoint.
On May 12, Elon said Tesla had suspended vehicle purchases using bitcoin, citing environmental concerns. Elon would later say the company is concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions.
So lets talk the technicals. Bitcoin is now below the 200 day moving average. When price crosses below the 200 day moving average is signifies potential bearishness. At the very less, the 200 day moving average is now serving as resistance.
What some more bearishness talk, Bitcoin also formed a head and shoulders pattern. The head and shoulders chart depicts a bullish-to-bearish trend reversal and signals that an upward trend is nearing its end. It’s the reason why many are saying the $30k level is very important. But according to one Chartist, even the $30k level might not be able to fend off Bitcoin price that much longer.
Source: https://www.youtube.com/channel/UCrp_UI8XtuYfpiqluWLD7Lw