Bitcoin (BTC) Breaks Support, Aims to Test the 2018 Lows Again

Bitcoin (BTC) Breaks Support, Aims to Test the 2018 Lows Again

The new 2019 year has brought certain changes, but it seems that Bitcoin’s 2018 struggles have continued to haunt it this year as well.

The world’s largest digital coin has lost 11% following today’s drop from $4,143 to $3,687.

As of press time, no particular catalyst that caused the dip has been identified.

“The one interesting thing about this movement is that it seems to be an exact reversal of the surge that happened on Sunday afternoon. At this point, the gains made since the start of the year have now been reversed and we’re back to a neutral 2019”, said Mati Greenspan, the senior market analyst at eToro.

Looking at the technical picture (Graph 1), it is clear that the break of the mini ascending trend line (the blue line) around $4,000, has accelerated the drop.

Graph 1. Bitcoin (BTCUSD) daily chart

The mini-trend line was supported by 100 4H moving average as well (the blue line), but it was not enough to keep the price above the $4,000 handle.

The break of the lower support located around $3,800 – the 200 moving average – further accelerated the dip in the afternoon’s trading.

This move has brought a certain resemblance to the December’s drop that resulted in the fresh 2018 low around the $3,200 mark.

The next support is the 61.8% Fibonacci retracement zone located around the $3,660 mark. However, the strength of today’s move points to the test of the 2018 lows. Newconomy still sees $3,000 as a major target for the bears.

Bitcoin is currently trading at $3,715 (Bitfinex data), with the market capitalization of around $65 billion.

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