Carnage In Cryptos
In the crypto space, there was a major carnage yesterday, the Bitcoin price dropped below the 100-day moving average yesterday. The 100-day moving average is trading at 9814. This particular weakness in the Bitcoin price was long coming. The reason for this is that the price had several battles with the 50-day moving average, currently trading at 10,314, and it failed in all those battles.
The sharp sell-off in the Bitcoin price could be a start of something major and investors should keep an eye on the 200-day moving average which is trading at 6992. If the price doesn’t find any support near the 200-day moving average, then it is highly likely that a major sell-off can trigger which can easily push the price toward 6000 or even lower. Having said this, it is important to keep in mind that the RSI, the relative strength index, has entered into oversold territory. This simply means that speculators are going to jump back in and take the current sell-off as an opportunity to buy.
