Rejected? Bitcoin Price Attempts to Break Back Above Vital Moving Average

Last week, following disappointment surrounding the much anticipated Bakkt launch, Bitcoin price smashed below $10,000 and plummeted over 20% to under $8,000 before it found support in the high $7,000 range.

The move sent Bitcoin price through the 200-day moving average, with multiple daily closes below it. However, after the leading crypto asset bounced from below $8,000, it’s now attempting to break back above the important moving average, but may have just been rejected from it.

Bitcoin Price Rejected From Vital Moving Average, Can It Close Daily Above?

A battle between bulls and bears is currently taking place across the crypto market, as bulls try to reclaim Bitcoin’s 200-day moving average as support. But bears may already be able to celebrate a successful defense of the important indicator, as Bitcoin price was rejected from around $8,500 where the indicator is currently sitting and appears to be heading back downward to retest recent lows.

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Following yesterday’s daily candle close above support – which was also the monthly candle close – Bitcoin price immediately spiked higher, but was stopped at $8,500 in a nasty rejection.

Located just below that price point, lies the 200-day moving average that once acted as support, and could now be acting as strong resistance – enough to send Bitcoin falling further into a downtrend.

To reclaim the 200-day moving average as support, Bitcoin would need a daily candle close above it. The first attempt at breaking back above the important indicator was a failure, causing the crypto asset to fall further to $7,700 where it bounced right back up to current levels.

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