Bitcoin fell below the critical $70,000 level for the first time in a long time, reaching its lowest point in three months. The selling pressure has been attributed to growing inflation concerns in the US, increased expectations of a Fed rate hike, declines and uncertainty in technology stocks, ETF outflows, and liquidations in leveraged trading.
Bitcoin’s Critical Support Level Is Back in Focus
Bitcoin pulled back to $67,500, testing its 200-week simple moving average (SMA) at $67,993. With this decline, $BTC tested the long-term trend line for the first time in about 11 weeks, since August.
In his latest analysis, Keith Alan, co-founder of Material Indicators, said this level is critical for $BTC, noting that it has historically served as a key support and resistance point during Bitcoin bear markets.
Alan also cautioned that the 200-week moving average coincides with a significant RSI support and resistance zone. He said the weekly RSI is now around 41.5, a level that also acted as support in late July, and that a drop below 41.5 could lead to a retest of the $57,700 cycle bottom. According to Alan, holding the current support zone could help the uptrend regain strength.
Bitcoin Could Present a Buying Opportunity
As Bitcoin tests its 200-week moving average following its recent drop, Strive CEO Matt Cole suggests the level could represent a buying opportunity.
Matt Cole said $BTC had tested its 200-week moving average, a level that has historically been favorable for long-term investors.
Cole also said Strive’s balance sheet performed well during the $BTC declines, the company raised funds through a preferred stock issuance rather than debt, and it did not use $BTC assets as collateral. As a result, he said, it did not face the risk of a margin call or forced sale.
$100,000 May Still Be Possible!
Crypto analyst Crypto Capo said in his latest Bitcoin chart analysis that a local bottom may have largely formed. He said his previously proposed bullish scenario was quite accurate, but that he ultimately decided against it, adding that he did not regret his decision.
Analyzing Bitcoin’s three-day chart, the analyst said it may have formed a local bottom and pointed to the $64,900-$73,800 range as a key support zone. He predicts that after a bottom forms in this region, Bitcoin could rise toward the resistance zone between $100,000 and $108,400.
*This is not investment advice.
