Bitcoin Hovers Near Price Support as Long-Term Bear Cross Looms

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Prices will likely breach the 50-day average support near $8,550 and extend losses toward $8,000 in the short term.

Confirmation of the bear cross may mark an interim bottom in BTC, according to historical data.

Bitcoin risks falling below key support near $8,550, with a widely followed bitcoin price indicator teasing its first bearish turn in over a year.

The 50-day MA has been restricting downside since Nov. 8, but may be breached soon, courtesy of a looming bearish crossover between major price averages.

Bitcoin's 100-day MA is now beginning to trend south and looks set to cross below the 200-day MA in the next couple of days.

The impending bear cross will likely bolster the bearish sentiment and give prices another nudge down.

The 50-day MA support at $8,543 could be breached ahead of the bear cross.

BTC sell-off ran out of steam near $275 two days ahead of a bear cross confirmation on Oct. 7, 2014, following which prices jumped to levels above $400 by mid-October, according to Bitstamp data.

Another bear cross on April 29 the same year was followed by consolidation in the range of $420-$450 and a rally to $680 by early June.

In 2018, prices rallied from $7,900 to levels near $10,000 in the 2.5 weeks following the bear cross in mid-April.

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