Bitcoin's current price lies below the 200-day moving average (200DMA), raising concerns among analysts about potential market changes. Key support and resistance levels are under discussion.
Key Support and Resistance Levels
The Mayer Multiple reveals $66,000 will function as a primary support level according to analyst findings. Historically, Bitcoin has shown a rebound from a price level near a 0.8 Mayer Multiple, suggesting a potential market recovery. Resistance exists near $83,181.75, which marks the 200DMA. A strong breakout above this mark could eliminate further bearish scenarios and indicate a continuation of the broader upward trend.
Bitcoin Drops Below 200DMA and Volume Declines
Bitcoin’s decline below the 200DMA has sparked caution among traders, as similar movements in past cycles have often led to prolonged corrections. A sustained break below this support level would likely result in further price declines. On the contrary, a bounce from this level could indicate renewed bullish momentum.
Trading Activity Analysis
Data from Coinglass show Bitcoin's trading volume explosively increases during market price fluctuations. In mid-March and late December, volume surpassed $100 billion in daily trading. However, recent trends indicate a decline in both volume and price, suggesting reduced market participation.
Analysts continue to monitor the development around key support and resistance levels. The market's reaction to these levels is expected to provide more insight into future market trends.
