- Bitcoin slips below its 200-day average, with $66,000 as the next key support level.
- Low accumulation signals investor caution, increasing risks of further downside.
- Analysts warn Bitcoin may drop further unless it breaks above $85,672 to confirm a reversal.
Bitcoin is under pressure after slipping below its 200-day moving average, a key indicator that often signals shifts in market momentum. In an X post on Tuesday, analyst Ali Martinez highlighted that the next critical support level is $66,000, based on the Mayer Multiple. Historically, this metric has been a reliable gauge of Bitcoin’s performance in different market cycles. Traders are closely watching for signs of either a rebound or further decline, as volatility remains a major factor.
Bull Market Uncertainty
The third year of a bull market is often a time of heightened uncertainty, marked by significant price swings and sudden corrections. Analysts note that Bitcoin’s current movement aligns with historical patterns, where sharp shakeouts challenge both short-term traders and long-term investors. While this phase can be difficult to navigate, those who stay ahead of the trend often emerge stronger.
Currently, the level of accumulation remains low, so it is unlikely that new investors will enter the market. The Accumulation Trend Score indicates no definitive buying intensity, which means many long-term holders are waiting for further signs. If Bitcoin fails to accumulate again, there could be difficulty regaining the upward movement that has been lost, and this would open up more room for the downside. As of press time, BTC is trading at $81,547, down by 1.34% over the past day.
Potential Further Decline
However, analyst More Crypto Online pointed out in an X post that Bitcoin has yet to find a stable footing. According to his analysis, Wave 3 is pushing lower, suggesting further downside is possible unless momentum shifts. If this trend continues, Bitcoin could first test $75,327, followed by a drop to $72,631. Analysts warn that bullish optimism remains speculative without a five-wave reversal and a breakout above $85,672.
Related: Strategy Faces $3B Loss on $40B Bitcoin Holdings: Report
Bitcoin’s price direction in the near future will play a key role in shaping overall market sentiment. If it holds crucial support levels and rebounds, investor confidence could be restored. However, failure to stabilize may trigger another wave of selling, worsening market uncertainty. The coming days could be pivotal in determining Bitcoin’s trajectory for the rest of the cycle.
