Navigating the Bearish Storm: Bitcoin Price Plummets Below $58,000
The cryptocurrency market is facing a turbulent time as Bitcoin’s price takes a sharp nosedive below the $58,000 level. This significant setback has raised concerns among investors, with fears of a potential downtrend towards the $44,000 support level looming large.
Bitcoin’s inability to consolidate above its all-time high of $73,700, reached in March, has led to a retracement of over 20% on the monthly timeframe. Crypto analyst “Blockchaineddbb” has warned of further downside risk, suggesting that a daily close below the 200 daily exponential-moving average (EMA) at $58,000 could pave the way for a drop to $44,000.
The historical data analyzed by Blockchaineddbb indicates that each time Bitcoin lost the 200 daily EMA, its price declined by an average of 30%, with losses ranging from 8% to 50%. This breach signals a dangerous territory for Bitcoin, prompting investors to consider exit points to mitigate potential losses.
For those holding their positions during this bearish storm, Blockchaineddbb recommends considering support levels at $50,000, $48,000, and $44,000, with $44,000 being the worst-case scenario. Long-term holders are advised to stick to their averaging strategy and target an exit price of $75,000 by December.
Despite potential factors like a predicted September dump, the Mt. Gox settlement deadline, and upcoming elections, the analyst believes that the bearish sentiment will persist until December. Altcoins are also expected to suffer losses if the current trend continues, with a potential shift only possible if Bitcoin manages to close above the 200 Daily EMA.
As of now, Bitcoin’s price hovers around $56,435, just below the critical $58,000 EMA, after dropping to $53,500 in early Friday trading. The market remains uncertain, with investors closely monitoring the situation for any signs of a turnaround.
