Bitcoin Drops 11.3% and Trades Below 200-Day Moving Average
Bitcoin (BTC) has declined 11.3% in the past week, trading in the low $80,000 range. This drop has pushed BTC below the 200-day moving average (MA), raising concerns of a deeper pullback.
Key Price Level to Defend
- BTC is below the critical 200-day MA, which historically serves as strong support.
- Analyst Ali Martinez noted that BTC must stay above the TD Sequential risk line at $79,280 for potential recovery.
- A move above this level may lead to a rebound.
- Analyst Ted pointed out that BTC often experiences 25% to 30% corrections before rebounding to new all-time highs.
- If BTC follows previous patterns, it could reach approximately $104,000 after climbing 30% from its current price.
- Macroeconomic factors, including trade tariffs and Federal Reserve policies, may impact BTC’s trajectory.
Reclaiming $84,000 Necessary
- Martinez highlighted the need for BTC to reclaim $84,000 as support before any significant upward movement.
- Once secured, BTC could potentially rally toward $128,000.
- Several indicators suggest BTC may have found a local bottom, with Rekt Capital noting the recent plunge to $78,258 as a possible cycle low.
- The US Dollar Index (DXY) recorded one of its largest weekly breakdowns since 2013, historically signaling bullish momentum for BTC.
At press time, BTC trades at $80,137, down 3.5% in the last 24 hours.
