Bitcoin continues lower, falling below key 200-day moving average
Bitcoin’s decline intensified, hitting a low of $53,485 this morning and temporarily back to $54,378 at the time of writing. Currently, the Crypto Fear and Greed Index lands at 29, which is on the fear level.
Omkar Godbole, market director and analyst at CoinDesk, a foreign currency media, pointed out that Bitcoin fell below the 200-day moving average (200-SMA) for the first time since October last year. This moving average is usually used to judge the long-term performance of traditional and cryptocurrency markets. Important indicator of trends.
Godbole said that if the price of Bitcoin continues to be below the 200-day moving average in the future, it will usually be regarded as a sign that the market has turned to a downward trend.
In October last year, Bitcoin broke through the 200-day moving average, when the price was $28,000, becoming an important technical bottom, paving the way for the market to usher in the U.S. Bitcoin ETF, which caused Bitcoin to rush to all-time highs.
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Analysis 1: Bitcoin will fall to $50,000
"Crypto City" previously reported that cryptocurrency analysis agency 10x Research is not optimistic about the short-term trend of Bitcoin and believes that it may fall back to US$55,000 in the near future.
10x Research analyst Markus Thielen published another article yesterday pointing out that for Bitcoin spot ETF buyers and miners, $60,000 is an important technical and psychological support level. As this point falls below and sellers scramble to find liquidity , the price is expected to decline at an accelerated pace, and the target price is US$50,000, which may be a suitable point to re-enter the market.
Source: X/10x Research
10x Research predicts Bitcoin will fall to $50,000
Analysis 2: Bitcoin’s short-term bottom falls at $52,809
Michael Van de Poppe, a well-known analyst and founder of MN Capital, predicts that Bitcoin will have a fierce long-short battle below the low of $56,000 in early May. If Bitcoin does not rebound reliably near this point and breaks through 70,300 again The US dollar may dip further to a low of $52,089.
Analysis Three: Bearish flag suggests Bitcoin could fall to $49,200
Nancy Lubale, an analyst at Cointelegraph, a foreign media outlet in the currency circle, pointed out that as Bitcoin fell below the 200-day moving average, a typical bearish flag (Bear Flag) has formed, and it is expected that it may fall back to the high of $49,200 on February 12. .
Analysts still see bargain hunting opportunities
Valentin Fournier, an analyst at consulting firm brn, said that although the Federal Reserve Chairman's remarks and continued selling pressure may send Bitcoin to $52,000, investors should regard this point as a buying opportunity due to U.S. cryptocurrency regulation. Policy improvements and cooling inflation have not yet been fully reflected in prices.
Anonymous analyst Mustache said that in the past 18 months, every time Bitcoin returned to the 200-day moving average, it meant that the price was already in a periodic bottom area, and at the same time, the relative strength index (RSI) on the daily line It will also enter the oversold zone.
Image source: X/Moustache
Analyst Moustache believes that Bitcoin has entered a periodic bottom area
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.