Bitcoin (BTC) Price Loses Key Support Levels as On-Chain Analysts Sound the Alarm
- WBOYOriginal
- 2024-08-20 03:38:08538browse
After months of consolidation, Bitcoin's price has lost key support levels that could signal the start of a new bear market.
Bitcoin’s price lost a key technical support level on Monday, a development that could signal the start of a new bear market in the leading cryptocurrency.
Bitcoin’s price fell to around $63,000 on Monday morning in the United States, according to data from Coinbase. This marks a loss of the 200-day simple moving average (SMA), a closely watched technical indicator that tracks the average price of Bitcoin over the last 200 days.
Bitcoin’s price has largely consolidated in recent months after surging to new all-time highs of around $65,000 in April. This consolidation has allowed the 200-day SMA to catch up to the market price.
Now that Bitcoin’s price has fallen below the 200-day SMA, some technical analysts are warning that this could be the start of a new bear market in the leading cryptocurrency. A bear market is typically defined as a decline of 20% or more from recent highs.
However, it’s important to note that technical analysis is not an exact science and there are many other factors that could influence Bitcoin’s price in the coming weeks and months.
One key factor to watch is the level of support at $50,000. If Bitcoin’s price can hold above this level, it could help to prevent a further sell-off. However, if Bitcoin’s price falls below $50,000, it could trigger a faster decline.
Another factor to watch is the level of buying interest from institutional investors. In recent months, we’ve seen a lot of buying activity from hedge funds and other large institutions. This buying interest has helped to support Bitcoin’s price at higher levels.
However, if institutional investors start to lose interest in Bitcoin, it could lead to a sell-off in the cryptocurrency. Keep an eye on the level of buying activity from institutional investors in the coming weeks and months.
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