As selling pressure persists across the Bitcoin and crypto market, market maker Wintermute has offered key views on Bitcoin’s technical outlook. The firm said investors should proceed carefully, since Bitcoin is still trading below its 50-week moving average.

Wintermute Raises a Critical Warning on Bitcoin!

In its weekly report, Wintermute noted that Bitcoin dropped to roughly $73,500 during the weekend sell-off. Still, $BTC managed to stay above the approximately $73,000 level, which is tracked as the 200-day moving average.

Even so, Bitcoin’s weekly close came in below its 50-week moving average, near $75,500. That broke $BTC’s run of holding above its seven-week average.

Looking ahead, Wintermute suggests that if Bitcoin closes a day below its 200-day moving average of around $73,000, the next low could be $68,000.

Wintermute also pointed to factors adding pressure on $BTC and other cryptocurrencies, including net outflows from US spot Bitcoin ETFs, the possibility of higher interest rates, and the risk of further losses in altcoins.

A Positive Outlook if Bitcoin Holds Above $80,000!

Contrary to the bearish case, Wintermute said the market outlook could turn positive if Bitcoin closes above $80,000 on a daily basis and spot ETFs return to net weekly inflows.

The firm added, however, that it is keeping a cautious stance for now.

“…We remain cautious as $BTC trades below its 50-week moving average. While the next low is $68,000, a recovery above $80,000 could change this view.”

*This is not investment advice.

Source: en.bitcoinsistemi.com. Adapted by NBTC.