Crypto markets have been pretty gloomy lately, with Bitcoin taking a hit. It’s currently trading below its all-time high. Let’s dive into what’s happening and what one analyst predicts.
A Bearish Outlook for Bitcoin
Analyst Ali Martinez recently shared a pessimistic outlook for Bitcoin’s price. He suggests it could drop to around $74,700 before finding support. This prediction is based on the 50-week moving average (50WMA) on the Bitcoin weekly chart.
The 50-Week Moving Average: A Key Indicator
Historically, Bitcoin’s price has often bounced back after hitting this 50WMA. For example, in July 2021, it found support at the 50WMA, rebounding to over $67,000.
Potential Scenarios
If the $74,700 support level holds, Bitcoin could potentially recover and even surpass its previous all-time high. However, if it breaks below the 50WMA, a much more significant correction could be on the cards.
Looking at past cycles, breaking the 50WMA could signal the start of a bear market. In the last cycle, after breaking this average, Bitcoin plummeted from around $68,000 to below $17,000 – a massive 75% drop. It’s worth noting that the 2022 crash was likely worsened by events like the Terra Luna and FTX collapses.
Bitcoin’s Current Price
At the time of writing, Bitcoin is trading slightly above $85,200, showing little change in the last 24 hours.
