Right now, the price of Bitcoin is slightly below the 200 EMA. This level has always been a reliable stopgap for a long-term trend, which makes it significant. Breaking below this mark could signal a more serious bearish trend and significant price drops. The bearish outlook has been reinforced by resistance at the 50 EMA, which is located at $63,634, and the 100 EMA, which is located at $63,315.
While the overall trend remains weak, the RSI at 31 indicates that Bitcoin is approaching oversold territory, suggesting a possible short-term recovery. Peter Schiff’s analysis of Bitcoin often leans heavily toward bearish extremes despite the fact that it is based on traditional market skepticism.
If Bitcoin breaks its current support, a prediction of, say, 60% of the value could be considered alarmist. A 60% decline would suggest a drop to roughly $23,000, which might not be consistent with previous price patterns even though further drops are still possible. Despite those drops, Bitcoin has been exhibiting some resilience – but obviously not enough.
As a result of adoption trends and optimistic investor sentiment, Bitcoin has previously recovered from similar drops. Despite recent drops, institutional interest in Bitcoin has not diminished.
Institutions continue to support Bitcoin by investing in and developing products linked to the cryptocurrency, indicating their confidence in its long-term potential. The market’s sentiment is subject to sudden changes. Positive news can swiftly alter the narrative and drive up costs. Clearer regulations or enhanced technology are two examples of this.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
