As a seasoned crypto investor with battle scars from numerous market cycles, I can attest that navigating the Bitcoin price movements has become as predictable as the tides – unpredictable and ever-changing. The recent failure of the Bitcoin price to break the MA-200 is reminiscent of a boxer stepping into the ring, confident of victory, only to find himself on the canvas after a surprise uppercut from the opponent.
After a short period above $66,000, the Bitcoin price has dropped, causing it to fall below several key thresholds. This opening allowed the bearish investors to regain dominance over the largest cryptocurrency by market capitalization once more. Currently, as Bitcoin’s price seems to be recovering, the bearish sentiment persists and even intensifies, especially since a recent unsuccessful attempt to surpass the MA-200 line. This failure indicates that the upward trend might just be temporary and a more significant downturn could be imminent.
Why The Bitcoin Price Failing At MA-200 Is Bad
As a crypto investor, I recently noticed that Bitcoin was making an attempt to surpass the M1-200 level, as pointed out by analyst RLinda in her TradingView post. On the daily chart, the price was steadily approaching the $64,000-$65,000 resistance zone. Regrettably, I found that the obstacle at $64,000 remained formidable, causing Bitcoin’s price to retreat once more.
Due to the daily MA-200 failure, the Bitcoin price is currently shaping into a falling trendline, which is typically a bearish sign because descending channels often indicate a potential price drop. Adding to this, the price has breached a significant range boundary with a substantial liquidity zone and many crypto analysts think that the market could continue to decline.
Given that bears are in charge, it appears more a matter of timing than if Bitcoin’s price will dip once more. This raises the query as to how far the price could drop, with cryptocurrency analysts predicting at least a 10% decline which would take the price below $60,000 again.
As a crypto investor, I’ve been keeping an eye on the resistance levels suggested by analysts, which are at $62,745 and $64,955 for Bitcoin. If we manage to surpass these levels convincingly, it would confirm the uptrend. However, if RLinda’s support levels of $60,000, $59,250, and $57,700 don’t hold, there might be a deeper dip than anticipated, potentially leading to a drop as low as $52,000.
How To Weaken The Bearish Pressure
A different expert, Alan Santana, has pointed out that Bitcoin’s failure to surpass its 200-day moving average. In his article, he suggests that since Bitcoin is currently trading beneath this 200-day moving average, it has increased the likelihood of a bearish trend continuing, with a possible decline on the horizon.
In other words, there are two potential scenarios that could alleviate the growing bearish trend:
Two situations could counteract the growing bearish influence on Bitcoin’s price:
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2024-10-10 09:40