Bitcoin price manages to hold above $20,000, but analysts warn of further decline ahead

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(Kitco News) – It was another day of disappointing activity in the crypto market, with prices holding steady in the absence of any major developments, which is typical of crypto winters.

Data from TradingView shows that several bear attempts to push the price of Bitcoin (BTC) below $20,000 were strongly defended by bulls, which quickly pushed its price back into the $20,200 range.

BTC/USD 4 hour chart. Source: Trading View

This behavior largely aligns with the analysis provided by Kitco’s senior market analyst Jim Wyckoff, who noted in his morning Bitcoin briefing that “the bulls this week have stabilized prices and they remain in mode. pause or lateral”.

Although they managed to keep the price of Bitcoin above $20,000, Wyckoff warned that “the bulls need to show more power to break the downward price trend that is still in place on the market. daily chart. The bears still have the slight overall short-term technical advantage.

BTC falls below its 200-week moving average

This week’s price pullback has once again caused BTC’s trading price to fall below its 200-week moving average (200WMA), a metric that has always provided insight into which stage of the market cycle it is in. find the best crypto.

According According to Arcane Research, trading Bitcoin below its 200WMA “is not a common sight and buying below this well-known technical indicator has always been a profitable strategy.”

BTC price against the 200 week moving average. Source: Lookintobitcoin.com

Much to the chagrin of crypto proponents, BTC has been trading below 200WMA for nearly two months, which is a first for the major cryptocurrency.

“We’ve never seen this before, and it may appear that the important indicator has tipped over resistance. This is definitely a bearish technical signal,” Arcane Research said.

As for where the price could head next based on the current state of the market, the research and analytics firm warned of the possibility of a decline as low as $11,000 in a worst-case scenario. , while noting that for now, the 2017 high is offering support.

“The next major support levels on a weekly scale could be around $16,000 or even between $11,000 and $12,000. However, on the bright side, bitcoin is still trading above its 2017 high, and it looks like the 2017 high is now acting as a strong support level.

A boring day in the altcoin market

Activity in the altcoin market largely mirrored Bitcoin’s performance, with most tokens trading flat on the day after suffering an early decline.

Daily performance of the cryptocurrency market. Source: Coin360

Ethereum (ETH) staking platform Lido DAO (LDO) led the alts for the second day in a row, gaining 11.3% as the Ethereum merger date moved ever closer. Other notable performances included a 9.75% increase for MXC (MXC) and a 9.54% gain for Curve DAO Token (CRV).

The overall cryptocurrency market capitalization now stands at $985 billion and Bitcoin’s dominance rate is 39.3%.