Despite all the optimism we have about Bitcoin ( BTC ) and crypto, we have to face the facts.

As of now, Bitcoin ( BTC ) has met resistance and failed badly at an intersection of two moving averages. Bitcoin ( BTC ) has been unable to rise above the 21-day moving average (green) line. The 21-day moving average is a key indicator of short term momentum. If an instrument is above its 21-day moving average, then you can say an uptrend is in place. If an instrument is below its 21-day moving average, the market is either in a range or in a downtrend.

In the case of Bitcoin ( BTC ), the recent promising rally failed right at the 21-day moving average. That leads us to believe that bears are still in control of the market. We don't like admitting that, but the facts are the facts.

In terms of support, we see 8166 as a critical level. Bitcoin ( BTC ) has to hold above that level.

Bottom Line: We don't want to make too much about the price action on one day. Bulls have to take control of Bitcoin ( BTC ) to go higher. We do not want to see Bitcoin ( BTC ) fall below 8000 again.

DISCLOSURE: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice.  The Token Metrics team has invested and advised in many blockchain companies. A complete list of the team disclosures, advisory roles and current holdings can be viewed here: https://blog.tokenmetrics.com/disclosures/.