Bulls or bears? Bitcoin falls below key level, sparking uncertainty

Bulls or bears? Bitcoin falls below key level, sparking uncertainty

Cryptocurrency traders are on edge. After a sharp drop, Bitcoin has fallen below $99,000 and broken the all-important 365-day moving average, sparking speculation that a bear market could be on the horizon.

Why is this drop so significant?

The 365-day moving average tracks the average price of BTC over the past year and is considered a key trend indicator. If the price falls below this level, it often signals the start of a bear market. This indicator is one of the most important for analysts to assess market sentiment.

What do the experts say?

Julio Moreno of CryptoQuant said that breaking this level signals the start of a bear market from 2022. The price of BTC briefly fell below $99,000, the lowest level in several months, and is currently hovering around $101,800.

However, analysts say this decline is just a “routine purge” within the bull cycle. Andri Fauzan Adziima of Bitrue reminded that such corrections are common and are often followed by 40% increases over the next two months.

What next?

Some experts say that to confirm the bearish trend, the price would have to significantly break the $100,000 mark, which has not happened yet. Tom Cohen of Algoz Technologies noted that despite the current decline, it is still possible that this is a temporary correction rather than the beginning of a long-term winter.

Conclusion

Bitcoin is facing an important test, the outcome of which could affect the further direction of the market. Traders are watching to see if the price can recover above key levels or if the path to another bearish decline opens. One thing is certain – uncertainty in the market still persists.

*This is not an investment recommendation.

The Coingarage Team