Did bitcoin finally burst, as most analysts had predicted?
While the answer to that question may be hard to decipher, the most widely used digital currency may have a strong floor in place, according to a technical indicator.
The world's largest cryptocurrency plunged below $10,000 for the first time in six weeks, raising the specter that last year’s 1,400 percent rally was giving way to what many considered an inevitable bursting of the bubble. Its tumble to a low of $9,186 pushed a month-long rout past 50 percent.
But here's the good news. The virtual coin has not breached its 100-day moving average since 2015. The technical indicator is currently placed at $8,876.
In the last 12 months, the cryptocurrency has bounced back from levels 20 percent above the 100-day moving average. In fact, during the two months of July and August, it doubled from near $2,000 to $4,000. Similarly, from September to November the price moved from about $3,400 to over $7,000.
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