The price of bitcoin (BTC) is between decisive technical levels, where support is key and strength could fade.
The market research and analysis firm, Glassnode, highlights that bitcoin is trading below its 200-day moving average (200DMA), located at USD 107,400, and remains just above the 365-day moving average (365DMA), which is around USD 99,900. In addition, the intermediate level of 111DMA stands at USD 114,700which would act as first resistance in the event of a rebound.
In the following graph provided by that firm, the moving average levels of bitcoin are better appreciated:
During the day this Friday, October 17, BTC fell to USD 103,900, as reported by CriptoNoticias, extending the accumulated loss of the week. The break of the USD 105,000 support marked an acceleration of the bearish movement which began after the rejection in the USD 114,000 area.
Glassnode points out that the current range between 200DMA and 365DMA is critical to define if the market manages to stabilize or enters a deeper correction phase.
The on-chain analysis highlights that maintaining the 365-day average could serve as a basis to reverse the downtrend. However, a clear break below $100,000 would open the possibility of a steeper declinewith technical objectives close to USD 95,000.
This deterioration of feeling is also reflects in the Fear and Greed Index of cryptocurrencies, which fell to 28 points, its lowest value since April. The combination of technical weakness and increased fear in the market reinforces caution among investors.