Bitcoin crashes to 95,000 USD – this line is now crucial

Bitcoin fell below the 95,000 USD mark last night, sending a clear signal from the bears. However, at this price level, the bulls showed renewed strength. It is remarkable how much support Bitcoin has received during corrections in this bull market.

This line is crucial for Bitcoin

The Bitcoin chart below shows several crucial support levels for the cryptocurrency. These are based on the 8-, 13-, and 21-day exponential moving averages (EMA) of the prices.

Why are these moving averages relevant? They are based on the well-known Fibonacci sequence that many traders use for their analysis. In this series, each number is the sum of the two previous ones:

8 = 3 + 5

13 = 5 + 8

21 = 8 + 13

Technical analysts use these Fibonacci levels because they often serve as reaction points in the market.

Currently, a key support is located at around 95,500 USD, the level of the 21-day exponential moving average (21-EMA). So far, BTC has not sustained a break below this level.

Interestingly, this 21-EMA is close to the 0.236 Fibonacci level. This level represents a 23.6% correction of the last up move from 66,930 to 103,767 USD – a potential support area.

Other important charts

Technical analysis is not an exact science, but merely serves to outline possible scenarios for the Bitcoin price.

Another interesting line is currently the 20-day moving average (SMA) of the prices, which is currently at 91,198 USD. With a current price of 96,755 USD, BTC is still above this level. This signal only becomes relevant when BTC records at least one daily closing price below this line.

However, a correction to the 83,000-85,000 USD level would not be unhealthy at all. In previous bull markets, BTC has regularly experienced such pullbacks to stabilize market activity.

However, strong demand from MicroStrategy and Bitcoin ETFs in the US currently seems to be preventing more severe corrections.

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Margharet Tess

Editor, Developer at Cryptheory Labs

I have been active in the cryptocurrency world for over 6 years, during which I have written countless articles about this sector. What fascinates me most about cryptocurrencies is their technological aspect and the problems they aim to solve. In the past three years, I have ventured into app development and am currently working on a larger project called P2E Buzzer. Stay tuned for the surprise. 🙂 My previous experiences: Business2Community.com, TradingPlatforms.com

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