{"id":416200,"date":"2020-02-27T08:32:47","date_gmt":"2020-02-27T08:32:47","guid":{"rendered":"https:\/\/uniquehot.com\/?p=416200"},"modified":"2024-06-11T13:42:35","modified_gmt":"2024-06-11T13:42:35","slug":"bitcoin-price-plunge-stopped-right-at-200-ema-and-it-means-recovery-is-imminent","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/bitcoin-price-plunge-stopped-right-at-200-ema-and-it-means-recovery-is-imminent\/","title":{"rendered":"Bitcoin Price Plunge Stopped Right at 200 EMA, And It Means Recovery is Imminent"},"content":{"rendered":"
The bitcoin price plunged by around eight percent overnight against the USD<\/a> in one of the strongest long squeezes in recent months.<\/p>\n The pullback stopped right at 200-day exponential moving average (EMA), and the dominant cryptocurrency has started to show signs of recovery.<\/p>\n The 200-day EMA is an indicator that is used by traders across various sectors as a key level to decide the short to medium-term trend of an asset.<\/p>\n Often, when an asset surges significantly in a short time frame, it becomes vulnerable to a steep sell-off.<\/p>\n Especially in a market like cryptocurrency that is heavily dominated by high leverage margin trading platforms, the short-term trend of assets are typically decided by short and long contract squeezes.<\/p>\n After hundreds of millions of dollars worth of long contracts were liquidated overnight, the bitcoin price has begun to rebound.<\/a><\/p>\n According to James Todaro, managing partner at Blocktown Capital, the bitcoin price recovered right at 200 EMA, suggesting that the bullish market structure has not been broken from the minor correction.<\/p>\n “First test of the 200 EMA daily for Bitcoin. This is why I said the market was not bullish yesterday with the funding spiking hard for longs,” said<\/a> Jacob Canfield.<\/p>\nBitcoin is recovering at a key level<\/h2>\n