Bitcoin prices fell through a crucial support level that served as a bottom in previous bear markets. The 200-week moving average has been a critical level of support for Bitcoin's long-term price movements in previous market cycles.
La quotation BTC plunged through this key level, falling to just over $ 21.000 during Tuesday morning's Asian trading session. The 200-week moving average was around the $ 22.000 price level, but it didn't hold up, with prices currently hovering around $ 21.883, according to Tradingview.
The move was spotted by analyst and trader Josh Rager, who tweeted "help us all" on June 14.
Placeholder VC partner Chris Burniske also commented on the implications of the fall through such a solid support level:
“Macro structural flows are so against us, that they probably only matter when risk currents reverse, we could soon enter relatively uncharted bear territory for cryptocurrencies. The ongoing struggle on the markets is much bigger than us ".
Bitcoin is currently down 69% from its all-time high in November, and in previous bear markets the decline has been more than 80%, so there may be even more pain. BTC could realistically drop to around $ 13.000 if history rhymes with this cryptocurrency winter.
What is evident in this cycle is that it is different from the previous ones. The entire planet is in economic turmoil, with runaway inflation and a cost-of-living crisis. Very few have money to invest in anything and fear and doubt are at an unprecedented level.
Analyst Alex Krüger intervened with his opinion, supporting the idea that a more widespread fear is occurring:
"Realize how this cryptocurrency crash has little to do with Celsius and the StETH drama and everything to do with the widespread panic in risk assets (stocks and cryptocurrencies) and broken charts."
The “broken charts” rendered much of traditional technical analysis (AT) ineffective, as this time the patterns and indicators were not adhered to.
However, it's not just cryptocurrencies that are being hit, but stocks, across all sectors, are taking a hit as well.
Where is the Bitcoin fund located?
With the confused state of the TA, it has become difficult to predict the movements of the cryptocurrency markets in the coming months. However, it can be said that the bears are not done yet.
The market total fell 70% below $ 1.000 trillion for the first time since January 2021, so the previous high of $ 830 billion in January 2018 doesn't seem so far away anymore.