The "Bitcoin Change" shop in Tel Aviv has a depiction of the digital currency.
Jack Guez of the Agence France-Presse is pictured.
According to Fairlead Strategies, the price of the digital currency is stabilizing after falling 30% in a month.
If the key support around $44,200 fails, the price could fall further.
"If initial support is broken, important long-term support will likely be tested, near $37.0K," he said.
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Over the past month, the price of the digital currency has fallen 30%, but prices are beginning to recover, according to technical analyst.
After being bearish for a number of weeks, short-term momentum for the digital currency has stopped. That's a good sign for the bulls as they see that the price is above the initial support level of $44,200.
"An improved daily convergence divergence and short-term oversold conditions suggest that there could be stabilization around initial support in the days ahead."
The potential for more downside in the price of bitcoin remains, according to Stockton.
The weekly stochastics are not oversold yet, which suggests the correction will resume. The bottom boundary of the weekly cloud will likely be tested if initial support is broken.
A decline to $37,000 would be a potential downside of 24%. If the monthly MACD doesn't flash a sell signal, the decline could be temporary.
There has been a downtick in long-term momentum that has us watching the monthly MACD closely, but we maintain a long-term bullish bias with the rising weekly cloud still intact.
Business Insider has an original article.
