- Bitcoin (BTC) is positioned for more bearishness as a fresh weekly close below the 200-week moving average signals.
- BTC’s rejection of over $26K welcomes bears to the party as double confirmation of the crash.
- According to crypto analyst Rekt Capital, the 200-week moving average is a strong resistance area.
As bitcoin bulls face rejection from above $26k, a senior analyst noted that the cryptocurrency’s benchmark price is facing fresh downward pressure.
Bitcoin price is currently up 2.4% in the past week, but failed to breach the previous key resistance around $26,600. The crash to as low as $24,800 last week amid negative regulatory headlines seems to have emboldened the bears even more.
Bitcoin is positioned to the downside
According to crypto analyst Rekt Capital, the technical outlook for BTC points to the possibility of further weakness. This is after a fresh weekly close below the 200-week moving average, indicating a “double confirmation of” [a] “Crash,” the analyst noted.
Last week, bitcoin price recovered from its lows of $24.8k after the market reacted sharply to lawsuits filed by the Securities and Exchange Commission against cryptocurrency exchanges Binance and Coinbase. Commenting on the upside, Rekt Capital Proposal that Bitcoin ownsJump straight to the 200-week moving average“
He noted that if the bears can turn this area into new resistance, BTC is likely to see a “two-step confirmation of the breakdown.” This price scenario was likely to lead to more downward pressure.
“tTechnically, BTC is positioned to the downside. Why? Because it produced a fresh weekly close below the 200-week moving average. As a result, $BTC showed a double confirmation of a breakdown from the 200-week moving average. Continuous rejection here may lead to a price drop,” Hey chirp on Monday, referring to last week’s forecast.
here a Schedule The analyst shared, showing Bitcoin’s rejection at both the downtrend line and the 200-week moving average.
If Bitcoin gives up the $26k level again, a run to the June lows could open the way for more losses. However, as BitMEX founder and former CEO Arthur Hayes pointed out last week, its potential cryptocurrency will suffer the pain of extended sideways before the new operator begins its “fall rally.”
As reported by CoinJournal, the founder of BitMEX believes that the catalyst will be retail trading, and the high probability is that this upcoming bull market will be led by a Chinese trader. BlackRock’s filing for a Bitcoin ETF could also be a place of interest in the coming months.