Bitcoin, after a significant drop, has once again approached price levels where the market’s future direction was previously determined. The area around $60,000 may bring a stronger buyer reaction in the short term, but the actual bottom will likely not form within just a few days.
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The $60,000 threshold is the first major test for the market
Bitcoin’s price has significantly accelerated its decline over several days and returned to the level around $60,000. This is where the market already showed strong activity once this year, so it’s not a random number on the chart. It’s an area where significant volumes were previously traded and where buyers may attempt to establish a defensive line again.
However, the weekly candle simultaneously sent a very harsh signal. A drop of more than 16% shows that supply had a clear advantage over demand and the bulls lost control. If bitcoin is to continue lower toward $52,000, it may not be a rapid fall. More likely is gradual testing of supports, returns, brief bounces, and a slower search for equilibrium.
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A new growth trend can only begin after a solid bottom is formed
From a long-term perspective, it’s important to monitor mainly the 200-week and 300-week moving averages. In past cycles, these dynamic levels often played a role in forming the final price bottom. In 2018, it was enough for bitcoin to repeatedly test the 200-week average, while in 2022 the market declined more significantly and leaned on the area around the 300-week average.
Therefore, it makes sense to expect that this year too, the decisive part of the cycle may play out precisely between these long-term averages. The $52,000 level fits well into this picture, as it lies roughly between them. At the same time, pressure is growing on major bitcoin treasury strategies, including Michael Saylor’s Strategy company, which according to reported data faces significant unrealized losses. The market is thus not only looking for a technical bottom, but also an answer to the question of how much confidence in the bitcoin strategy investors still have.
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