Bitcoin Slices Through Key Technical Price Level, Where is the Bottom?

Bitcoin prices have dropped below a critical support level that has previously functioned as the bottom of prior bear markets. In prior market cycles, the 200-week moving average has been a significant level of support for long-term Bitcoin price fluctuations.

During the Tuesday morning Asian trading session, BTC prices fell through this critical barrier, falling to slightly over $21,000. According to Tradingview, the 200-week moving average was around the $22,000 price level, but it has failed to hold, with prices now lingering at $21,883.

Josh Rager, a trader and analyst, saw the change and tweeted "help us all" on June 14.

"Structural macro flows are so against us, it likely only matters when the risk-tides change," Chris Burniske, a partner at Placeholder VC, said of the ramifications of breaking through such a strong level of support: "Could be entering pretty new bear territory for crypto shortly here." The battle on the marketplace is far greater than we are."

Unprecedented Fear

Bitcoin is presently down 69 percent from its all-time high in November, and prior bear markets have had declines of more than 80%, so there might be more agony ahead. If history repeats itself with this crypto winter, BTC might fall to about $13,000.

This cycle looks to be unique in comparison to prior ones. With soaring inflation and a cost-of-living crisis, the whole world is in economic distress. Few people have the financial means to invest in anything, and fear and skepticism are at all-time highs.

"Realize how little this crypto dump has to do with Celsius and the stETH issue and everything to do with the overall panic in risk assets (equities and crypto alike) and broken charts," analyst Alex Krüger said, confirming the idea that there was widespread concern.

Because the patterns and signs have not been followed to this time, a lot of conventional technical analysis (TA) has been made ineffective.

But it's not only bitcoin that's been pounded; equities in general have been hammered as well.

Where Does Bitcoin's Bottom Lie?

With TA in a FUBAR condition, predicting the moves of crypto markets over the next several months has become difficult. Nonetheless, it's reasonable to assume that the bears aren't done yet.

For the first time since January 2021, the overall market capitalization has dropped 70% to below $1 trillion, making the previous peak of $830 billion in January 2018 appear not so far away.