Bitcoin was above $74,000 and testing support at its 200-day moving average when a crypto analyst cautioned that further declines remain possible. The analyst identified $72,000 to $67,000 as the next potential support zone if the average fails.
The analyst said Bitcoin has fallen below the 200-day average during previous upward trends, and is watching its momentum indicator for an end to a pattern of lower highs. A possible inverse head-and-shoulders formation remains speculative, with its right shoulder not yet established.
For altcoins, the analyst put aggregate market capitalization just below $1 trillion, near its April 2021 level, and expects further short-term volatility. The analyst also said a rise in Bitcoin dominance could coincide with a broader crypto bull market, while noting that the previous cycle is no guarantee of a repeat.
Frequently asked questions
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What Bitcoin levels is the analyst watching if support fails?
The analyst identified $72,000 to $67,000 as the next potential support zone if Bitcoin falls below its 200-day moving average.
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Has Bitcoin fallen below its 200-day average during upward trends before?
The analyst said Bitcoin has dropped below the 200-day moving average during previous upward trends.
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How does the altcoin market compare with April 2021?
The analyst put aggregate altcoin market capitalization just below $1 trillion, near its April 2021 level.
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What momentum signal is the analyst watching for Bitcoin?
The analyst is watching for Bitcoin's momentum indicator to break its pattern of lower highs.
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Why is the potential inverse head-and-shoulders pattern speculative?
The analyst said the pattern's right shoulder has not yet been established.
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