Bitcoin has shed 11.3% of its value over the past week, dipping below the crucial $80,000 mark. Analysts warn of potential long-term corrections.
Dip Below 200-Day Moving Average
Bitcoin's price has breached the 200-day moving average, an important technical indicator for assessing long-term trends. Trading below this level might signal the potential for further decline.
Historical Corrections and Recovery Prospects
Analysts note that historical corrections of 25% to 30% have frequently been followed by new all-time highs. This year, the price fell from $109,000 to $79,000, suggesting potential recovery to $104,000.
Impact of External Factors on Bitcoin Price
External factors such as US trade policies and Federal Reserve decisions could affect Bitcoin's trajectory. Analysts stress that Bitcoin needs to reclaim $84,000 as support to initiate new rallies.
The current situation in the Bitcoin market demands close monitoring of technical indicators and external economic factors. Traders and analysts continue to observe changing liquidity conditions and investor sentiments.
