When the price of Bitcoin fell below $58,000, it hurt the market for cryptocurrencies and made people afraid to buy. People who are strong on the market are scared because this drop means the price could keep going down until it hits the $44,000 support level.
That’s because Bitcoin hasn’t been able to stay above its all-time high (ATH) of $73,700 since March. In that time, it has lost more than 20% of its value.
A well-known crypto expert called “Blockchaineddbb” has written an important report saying that Bitcoin’s price could drop to $44,000 if it closes each day below the 200-day exponential moving average (EMA) at $58,000. The expert stresses how important it is historically to break through the 200-day EMA and warns against waiting for a rebound after such a close.
Bitcoin Drops Significantly
Based on Blockchaineddbb’s research, losing the 200-day EMA has caused Bitcoin’s price to drop by an average of 30%, with drops ranging from 8% to 50%. This breach puts Bitcoin in a dangerous area, which makes investors nervous. To limit possible losses, the expert suggests thinking about an exit point before the next important support level at $50,000.
The analyst says that people who are holding positions should keep an eye on support levels at $50,000, $48,000, and $44,000. The last level is the worst case situation. As planned, long-term holders should stick to their averaging approach and build up their positions on certain dates, such as June 22, September 22, and December 22. The exit price goal stays at $75,000, and that goal is expected to be reached by December.
Taking into account the expected drop in September, the Mt. Gox settlement date, and the future elections, the analyst thinks that the bearish mood will last until December.
If the current direction keeps going down, altcoins will lose value all year. It’s not likely that Bitcoin will close above the 200-day EMA, which would mean that things could get better.
It is now worth $56,435, which is just below the important $58,000 EMA. It dropped as low as $53,500 early Friday morning.
