Bitcoin (BTC) experienced a critical moment on Bitcoin price as it dropped below both the weekly and daily 200 simple moving averages, causing panic in the industry. Famous cryptocurrency analyst Miles Deutsher reminded that this is the first time this has happened since the Luna/3AC crash. So what does this mean for BTC?
Apocalyptic Scenario for BTC
In his statement, renowned crypto analyst Deutscher pointed out that BTC is now below the 200 SMA levels for the first time since the Luna crisis. He emphasized that this is the third time in BTC history and recalled an unprecedented liquidation storm that occurred before.
So how accurate is the statement of the famous crypto analyst? Looking at previous data, it can be seen that when the 3AC and LUNA crises occurred, BTC experienced a sharp decline similar to the current one. This time, BTC gradually but steadily dropped from $29,600 to $25,000, triggering a similar liquidation crisis.
BTC Price Chart
When looking at the short-term outlook for BTC, it can be observed that the 9-day EMA line has fallen below the 50-day EMA line. This indicates that selling pressure is currently stronger and summarizes the two-week situation. Furthermore, the 20-day EMA line is also attempting to drop below the 50-day EMA line. If these technical indicators intersect, it can be said that BTC price has entered a medium-term negative cycle. If all these technical data are confirmed and a new formation becomes valid, there is a risk that BTC price may drop again to $25,195 and test this level. The real alarming level is seen at $23,815.
It’s not over for BTC yet. The current price of BTC may potentially offer a buying opportunity. If BTC retests $27,000 in the coming days, a rise to $29,600 can be seen from there. However, BTC’s performance in the past 24 hours, with a 0.1% decrease, is not very positive and consolidation continues.
