The previous week was a very bad one for cryptocurrency bulls with a big sell-off hitting the digital assets market. Bitcoin lost over 30% over the course of a single weekend and has dropped below the $20,000 mark over the weekend. Declines were halted at 78.6% retracement of the post-pandemic upward move in the $18,000 zone and now an attempt to launch a recovery move from the area can be observed. Note that the local low more or less coincides with the high from late-2017, which gives the area so more relevance as a technical support. While broad markets may be somewhat muted today due to an almost empty calendar, cryptocurrencies are expected to remain on the move as volatility proved to encourage more crypto trading in the past. One near-term resistance to watch is marked with the 200-week moving average (purple line) in the $22,400 area. However, whether bulls managed to defend the psychological $20,000 area or not may be key to near-term sentiment towards.
Source: xStation5
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