Bitcoin has finally started to show some signs of weakness after stagnating above $7,500 for days on end, recently dipping under the key support in and around $7,400. As of the time of writing this, the cryptocurrency is trading for $7,350 on many major exchanges, posting a 2% loss in the past 24 hours.<\/p>\n
While a 2% loss doesn’t seem decisively bearish, a leading analyst has said that a loss of the $7,400 price level, which currently doubles as the 100-period simple moving average for the four-hour chart, could imply that a strong drop in the Bitcoin price is coming. Here’s why.<\/p>\n
Nunya Bizniz, a popular cryptocurrency trader, recently noted that the 100-period simple moving average for Bitcoin has been a level of utmost importance over the past few months. He wrote<\/a> that “For the past handful of months, a close above or below the 100ma has been indicative of continuation.”<\/p>\n BTC 4hr:<\/p>\n For the past handful of months, a close above or below the 100ma has been indicative of continuation.<\/p>\n Price is currently below the 100ma, however 3 hours remain until close of current candle.<\/p>\n Kind of important area. pic.twitter.com\/1prDOPVYpj<\/a><\/p>\n — Nunya Bizniz (@Pladizow) December 9, 2019<\/a><\/p><\/blockquote>\n\n