The Bitcoin price trend is extremely unsettled and uncertain ever since the market collapsed in May 2022. While multiple attempts to revive the bullish trend were made but woefully, it ended up in a significant leg down. Furthermore, both the market participants and the whales have turned out to be less confident about the upcoming rally, which may adversely impact the buying pressure.
Amid fresh selloff, BTC price broke the 300-week MA level for the first time. The first time it touched these levels was during the COVID crash in 2020, but it did not break through the levels and rebounded strongly. For now, when the levels are breached, a significant drop could be imminent.
But wait there is a catch!!
A bullish cross has been observed between the 50-day (yellow) and 100-day (red) MA levels, with a downside break below the 300-week MA levels colored in white. This cross signaled the end of the first bear market that had ignited a significant surge to mark new highs. Therefore, a similar price action is now considered, but a breach through the 300-Week MA is related.
Well, Bitcoin is not only battling the Moving Average but it just breached it substantially. It is not that all is lost yet as the weekly close is yet to accomplish. Therefore, a bullish close above $18,000 may invalidate the bearish trajectory to pave way for the bulls to ignite a recovery phase at the earliest.
Fortunately, the RSI is showing a bullish divergence, and hence, it will be quite interesting to see how this might affect the BTC price in the future. However, in case of a bearish wave impulse, the price may hold tight against the $13,700 support at the 400-week MA so that Bitcoin bounces back from bearish captivity.
