Bitcoin (BTC), which fell further on the first week of the new week, was driven by a lackluster bullish momentum that sparked new lows of $44,000.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Bitcoin could lose $44,000 in “demand zone”
TradingView and Cointelegraph Markets Pro data showed that BTC/USD testing levels were consistent with analysts’ expectations.
The pair appeared to be less likely than ever to regain them in shorter time frames after closing below the 50-day and 200 day moving averages.
Michael van de Poppe (Cointelegraph contributor) believed that the bullish crossover between the two averages, also known as a “golden crossing”, was still possible. However, there was no guarantee that the event would lead to bullish behavior.
He predicted that there would be a “top of this cycle” in April-May next year. This gave BTC/USD a new and more ambitious time frame to reach its top.
He said that $44,000 and $47,000 are the resistance and support levels for the continuation up or down.
Analyst and trader Rekt Capital also considered $44,000 to be equally important. It was the lower limit of a “demand zone” for buyers.
“The BTC Weekly Close was technically not bad, as it occurred above orange demand area. On Monday, he said that BTC was now moving deeper into the demand zone.
“But, the demand area hasn’t disappeared. BTC will not see $40K as long as this demand area remains.
BTC/USD 1-week candle chart (Coinbase) Source: Rekt Capital/Twitter
Cardano 10% losses leads to new altcoin rout
Altcoins did worse overnight than Bitcoin, with the top 10 leading by 11% 24-hour losses in Cardano (ADA), and falling to $2.41
Related: Bearish pennant collapse confirmed? Five things to keep an eye on in Bitcoin this week
Ether (ETH), the largest altcoin, fell 6%. Polkadot’s DOT was the only saving grace for investors, at 4% upside, at the time this article was written.
ADA/USD 1-day candle charts (Binance). Source: TradingView
Rekt Capital shared the latest news about Altcoins.
“At the moment, the retests seem to be failing and coins are at risk of losing key support. It’s still early in the week. It could easily be normal retest volatility.
Scott Melker, a trader, soft-pedded concerns about Bitcoin’s declining market dominance and argued that new altcoins were artificially diluting it.