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Bitcoin’s Recent Price Movement
Explore the recent fluctuations in the price of Bitcoin, including analysis, trends, and potential factors influencing its value. Stay updated on the latest developments in the world of cryptocurrency.
Bitcoin’s (BTC) recent decline accelerated on Thursday, pushing prices below the critical 200-day simple moving average (SMA), which is considered a significant indicator of long-term trends in both traditional and crypto markets.
The cryptocurrency dipped below the 200-day SMA, currently at $58,492, during European trading hours, dropping to lows below $57,300, a level last observed on May 2, as per data from charting platform TradingView.
Markets that consistently trade below the 200-day SMA are generally viewed as being in a downtrend, while those trading above this average are seen as bullish. BTC crossed above the 200-day SMA in October, when the average stood at $28,000. This breakout, largely driven by expectations for a spot bitcoin ETF in the U.S., led to a significant rally to all-time highs above $70,000 by March.
The previous bull market can be defined by a rising trendline connecting the lows from October to January. With BTC now breaking below the 200-day line, attention has shifted to the bull market trendline support at $57,590.
A close below this level could trigger further selling pressure and downward price momentum, as traders often utilize trendline breaches as signals for their trading decisions. According to Alex Kuptsikevich, FxPro’s senior market analyst, there is a possibility of prices declining further to $51,500 in the short term.
“From the current position, a 12% drop to $51.5k (the February consolidation area) is more probable than a similar increase to $65.8k (the 50-day moving average),” Kuptsikevich mentioned in an email, highlighting the significance of the drop below the 200-day SMA.
9:15 UTC: Additional insights from FxPro’s analyst have been incorporated.