In the volatile world of cryptocurrency, Bitcoin, the global leader, has seen tumultuous waters of late. The shining star of the crypto-universe recently took a dive below $58,000, a turn of events that has precipitated significant alarm among the bullish investors. The downward stroke of this digital asset hints at a possible persistence of the downtrend, with the likelihood of dipping toward the ominous $44,000 support level.
Prior to this, Bitcoin had been grappling to cement its position above and conduct a retest of its record peak of $73,700, touched in March. The failure to reinforce this anchor resulted in a strong retrace of over 20% in its monthly graph.
A thought-provoking analysis has been put forth by a distinguished crypto analyst known by the moniker “Blockchaineddbb.” According to this expert, a single daily close below the 200 daily exponential-moving average (EMA), agonizingly hovering around $58,000, rings an ominous bell for Bitcoin’s price, raising the odds of it tumbling to a distressing $44,000.
Refusing to sugarcoat the situation, the analyst issues a warning against holding out for a rebound post the daily close below the 200 daily EMA. The chorus of concern corresponds with historical precedents that authenticate the severity associated with this breach. Data indicates that each incident when Bitcoin slipped under the clutches of the 200 daily EMA, it was subjected to an average price drop of 30%. More alarmingly, such losses varied from a modest 8% to a staggering 50%.
The crashing down of the 200 daily EMA limit demarcates an entry into perilous grounds for Bitcoin, thereby escalating investor’s anxieties. The analyst suggests a possible exit stage to curb prospective losses before the foreseen slide to $50,000 – the succeeding substantial support level.
To charter through the bearish storm, the analyst proposes average support levels for cling-on believers who decide to retain their positions. These entails $50,000, $48,000, and the last-ditch $44,000, a scenario best avoided. Long-term investors are recommended to stick to their envisaged averaging strategy by accumulating on designated dates such as June 22, September 22, and December 22.
The analyst anticipates a target exit price dangling at $75,000, confident about hitting this benchmark by December.
Influencing the prophecies are a variety of elements, including an anticipated September nosedive, the forthcoming Mt. Gox settlement deadline, and looming elections. Given these factors, the analyst prognosticates that the prevailing bearish sentiment may linger until year-end.
If the present foreboding undercurrent continues to churn, altcoins could end up being collateral damage, bleeding till the swan song of the year. Notwithstanding, a potential pivot in this narrative would only transpire if Bitcoin manages to claw back above the 200 Daily EMA. Yet, the prospect of that happening appears to be wishful thinking at best.
As the sun rose for trading on Friday, the Bitcoin price slumbered at $56,435, slightly under the crucible $58,000 EMA watermark after plunging to an early low of $53,500. Within the ever-shifting landscape of the cryptocurrency empire, Bitcoin showcases yet another chapter of its unpredictable saga.
