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After his short period above $66,000Bitcoin’s price drop had taken it below several key levels. This allowed the bears to prosper as they regained control of the largest cryptocurrency by market cap. Even as the Bitcoin price appears to be showing some recovery, the bear camp continues to strengthen, with a most recent failure to break the MA-200 suggesting that the uptrend may only be temporary and that a bigger crash is in the offing. game could be.
Why Bitcoin Price at MA-200 is Bad
Crypto analyst RLinda revealed in a TradingView post that Bitcoin price had actually attempted to break the M1-200 level. This attempt occurred on the daily chart, with the price moving towards the $64,000-$65,000 resistance. However, the resistance at $64,000 proved to be too strong and Bitcoin price was crushed once again.
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The product of this failure at the daily MA-200 is now that Bitcoin price is now forming a descending channel. This is obviously bearish for the Bitcoin price as descending channels are often messengers of a crash. Add to that the fact that the price has crossed a range boundary and a strong liquidity zone has formed, and the crypto analyst believes that the market could move further down.
As the bears remain in control, it appears to be a matter of when, not if, the Bitcoin price will bounce back. After this, the question of how low the price can go comes to the fore and the crypto analyst is currently looking at a drop of at least 10%, which would push the price back above $60,000.
The main resistance levels presented by the crypto analyst are $62,745 and $64,955. This means these are the levels Bitcoin price must scale successfully to confirm the upward trend. In comparison, RLinda estimates the support levels at $60,000, $59,250 and $57,700. If the BTC price cannot hold these levels, the dip could be deeper than expected and possibly fall to a low of $52,000.
How to Weaken the Bearish Pressure
Another analyst who has highlighted the Bitcoin price’s failure to break the MA-200 is Alan Santana. He explains it in his after that the fact that the cryptocurrency is now trading below this MA-200 has reinforced the bearish bias, with a decline expected to follow.
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However, there are a number of developments that could help weaken the mounting bearish pressure. The first of these is if Bitcoin price could close above $66,500 on the weekly chart. The second is like BTC is capable of completing a monthly closing of over $71,000.
Either scenario could negate the current bearish pressure rising on the Bitcoin price. “As long as Bitcoin trades below 66,500 (short-term) or below 71,000 (long-term), the bearish bias remains intact,” the crypto analyst warned.
Featured image created with Dall.E, chart from Tradingview.com
