Following the formation of a bearish moving average Death Cross on Bitcoin in early January, it plunged briefly below a major support level of $35,000, as shown on the following daily chart (I wrote about the crossover on Jan. 23).
It then bounced back above the 50 MA, retested $45,000, then plunged again to retest $35,000, before retesting $45,000, once again.
It's, basically, stuck in between the 50 and 200 MAs, or what I call a trendless "Chaos Zone"...roughly in between $40,000 and $49,000.
Until it breaks and holds above or below this zone, with force, look for more whippy, volatile, random and trendless spikes and plunges to occur in this crypto currency...one to avoid if you're risk-averse on the daily timeframe!
