The recent decline in the cryptocurrency market saw Bitcoin’s price drop below the $58,000 mark, sparking concerns among investors about a potential further downtrend towards the $44,000 support level.
Despite failing to hold above its all-time high of $73,700 from March, Bitcoin has retraced over 20% on the monthly chart, signaling a bearish trend.
Bitcoin’s Price Vulnerability
A crypto analyst known as “Blockchaineddbb” has analyzed the situation, indicating that a daily close below the 200-day exponential moving average (EMA) at $58,000 could lead to a further drop to $44,000.
The analyst warns against expecting a rebound after breaching the 200-day EMA, emphasizing the significance of this event historically.
Navigating the Bearish Market
Blockchaineddbb suggests considering support levels at $50,000, $48,000, and $44,000 for those holding positions during the bearish sentiment. Long-term holders are advised to stick to their averaging strategy, accumulating positions on specific dates.
The analyst maintains a target exit price of $75,000 by December, despite the prevailing bearish sentiment influenced by factors like the Mt. Gox settlement deadline and upcoming elections.
Altcoins are expected to suffer losses until the end of the year if the bearish trend continues, with a potential shift only possible if Bitcoin closes above the 200-day EMA, though the likelihood of this is low.
As of now, Bitcoin is priced at $56,435, just below the crucial $58,000 EMA, following a dip to $53,500 earlier in Friday’s trading session.
Featured image by DALL-E, chart courtesy of TradingView.com