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In its wake Short term over $66,000Bitcoin’s price decline has placed it below multiple important levels. This allowed the bears to flourish as they regained control of the largest cryptocurrency by market cap once again. So far, as Bitcoin price looks towards some recovery, the bear camp continues to grow strongly, with the recent failure to break the MA-200, suggesting that the uptrend may only be temporary and a bigger breakdown may be in the works.
Why Bitcoin price failure at MA-200 is a bad thing
RLinda cryptoanalyst open In a TradingView post that Bitcoin price has already tried to break the M1-200 level. This attempt was made on the daily chart with the price moving towards the $64,000-$65,000 resistance level. However, the resistance at $64,000 proved to be too strong and Bitcoin price fell again.
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The result of this failure at the daily MA-200 is that Bitcoin price is now forming a downward channel. Naturally, this is bearish for the Bitcoin price since bearish channels are often messages of a breakdown. Add to this the fact that the price has broken out of the range with a strong liquidity zone forming and the cryptocurrency analyst believes that the market may be heading lower.
With the bears still in control, it seems to be a matter of when the price of Bitcoin will fall again, not if. Then, the question of how far the price could fall came to the fore and the cryptocurrency analyst is currently eyeing at least a 10% decline, which could push the price out of the $60,000 level again.
The main resistance levels provided by the cryptocurrency analyst are $62,745 and $64,955. This means that these are the levels Bitcoin price should expand successfully In order to confirm the uptrend. In comparison, RLinda places support levels at $60,000, $59,250, and $57,700. If Bitcoin price is unable to maintain these levels, the decline could be deeper than expected, perhaps falling to as low as $52,000.
How to weaken downward pressure
Another analyst who highlighted Bitcoin price’s failure to break MA-200 is Alan Santana. He explains in his book mail The fact that the cryptocurrency is now trading below the MA-200 level has reinforced the bearish bias and a decline is expected to follow.
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However, there are some developments that could help dampen the growing downward pressure. The first is if Bitcoin price can close above $66,500 on the weekly chart. And the second if Bitcoin Able to complete a monthly close above $71,000.
Both scenarios will negate the downward pressure that currently exists Bitcoin price surge. “As long as Bitcoin trades below 66,500 (short term) or below 71,000 (long term), the bearish bias remains,” the cryptocurrency analyst warned.
Featured image created with Dall.E, chart from Tradingview.com