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Following its brief period above $66,000, Bitcoin’s price drop has been below several important levels. This allowed the bears to flourish as they regained control of the largest cryptocurrency by market cap once again. Even now, as the price of Bitcoin is heading for some recovery, the camp of the bears continues to be strong, with the most recent failure to break the MA-200, which suggests that the rise may be temporary and there may be a major crash.
Why Bitcoin Price Failed to MA-200 Bad
Crypto analyst RLinda revealed in a TradingView post that Bitcoin price had actually tried to break the M1-200 level. This attempt occurred on the daily chart with the price heading towards the $64,000-$65,000 resistance. However, the resistance at $64,000 proved to be too strong and the price of Bitcoin was again beaten down.
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The product of this failure in the daily MA-200 is now that the price of Bitcoin is now forming a descending channel. Naturally, this is a beach for the price of Bitcoin as descending channels are often messengers of crashes. Add to the fact that the price has broken the range limit with a strong liquidity environment created and the crypto analyst believes that the market may continue to decline.
With the bears still in control, it seems to be a matter of when, not if, the price of Bitcoin will bounce back. After this, the question is how the price can go lower and the crypto analyst is currently looking at a fall of at least 10%, which could push the price to $60,000 again.
The main resistance levels presented by the crypto analyst are $62,745 and $64,955. This means that these are the levels that the price of Bitcoin must successfully measure in order to ensure an increase. In comparison, RLinda places support levels at $60,000, $59,250, and $57,700. If the price of BTC cannot support these levels, then the dip could be deeper than expected, possibly crashing all the way to $52,000.
How to Weak Bearish Pressure
Another analyst who has highlighted the failure of the Bitcoin price to break the MA-200 is Alan Santana. He explains in his post that the fact that the cryptocurrency is now trading below the MA-200 has reinforced the bearish bias with the drop expected to follow.
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However, there are a few developments that could help ease the mounting bearish pressure. The first of these is if the Bitcoin price was able to close above $66,500 on the weekly chart. The second is if BTC is able to complete a monthly close above $71,000.
Both of these conditions will serve to create bearish pressure that is currently mounting on the price of Bitcoin. “As long as Bitcoin trades below 66,500 (short-term) or below 71,000 (long-term), the bearish bias remains,” the crypto analyst warned.
The featured image was created with Dall.E, a chart from Tradingview.com
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