Bitcoin’s Key Support Level Drops, Analyst Advises Against Panic
Bitcoin faced a significant development as it briefly dropped below its 200-day exponential moving average (EMA 200) recently, a crucial support level for traders. Altcoin Sherpa, an analyst, reassured followers not to panic, stating that it’s common for the EMA 200 to experience temporary losses.
Analysts are predicting potential price movements for Bitcoin in the range of $56,000 to $60,000 in the near future. Altcoin Sherpa highlighted the importance of observing the strength of the bounce, suggesting a potential return to the $60,000 price range or a drop back to $56,000 if momentum isn’t sustained.
Trader Michaël van de Poppe noted that Bitcoin is targeting liquidity gaps from future contracts on the Chicago Mercantile Exchange, with the cryptocurrency dropping to the $56,000 area after liquidating positions at $60,000. There are considerations that Bitcoin might reach levels between $50,000 and $52,000.
Rekt Capital pointed out a reversal in Bitcoin’s recent breakout, emphasizing a failed retest of the June downtrend line as support. Despite initial optimism, the downtrend line was not sustained, leading to a reevaluation of potential trends going forward.
Rekt Capital further highlighted that the current pullback is 21% deep with a 45-day duration, slightly exceeding the average retrace depth but surpassing the average duration. These developments indicate a period of volatility and uncertainty for Bitcoin traders.
