While Bitcoin (BTC) trades at its lowest levels in months, some market watchers have warned that the leading crypto may be preparing for another major drop as it retests a critical technical area that has historically marked a turning point.
Bitcoin Tags Key 200‑Week SMA After Four YearsHowever, this week’s broader volatility pushed BTC toward the range’s lower boundary for the first time in months, reaching a four-month low of $61,383 on Wednesday night.
As he explained, deviation below this SMA has “historically been the key to building out a Bear Market bottom formation.” In June 2022, Bitcoin reached this level during its bear market correction, quickly losing it as support on the weekly timeframe.
Following the initial drop below the 200-week SMA, the leading crypto traded sideways, briefly retesting this level before continuing its descent to its late 2022 bear market bottom.
According to the post, BTC was rejected from the base of the Macro Triangle after failing to break past the $82,500 area, revisited the 50-Month EMA during the recent drop, and is currently breaking down from this EMA, a setup that has repeated each cycle before the market bottom.
BTC’s $60,000 Support About To Give In?“The good news is there are 1-2 such clusters left in this Bitcoin Bear Market, with the Bear Market Bottom being the final cluster,” he concluded.
The analyst previously noted that Bitcoin has consistently bottomed between the 1.0 and 0.8 MVRV Pricing Bands over the past decade. Now, the next major area of support is between $54,000 and $50,000, where the 1.0 pricing band is located.
