Bitcoin, the most prominent cryptocurrency, closed beneath its 200-day moving average (MA), a key development line in determining the asset’s long-term future. According to market observer Joe Carlasare, this transfer has historically signaled further drops, with Bitcoin averaging a further 20% drop since 2016.
According to CoinGecko data, Bitcoin is currently trading at $26,015.30 after falling to an intraday low of $25,643 at the time of writing.
A convergence of events
Many people first blamed the recent drop on a false social media post by Bitcoin Journal. The post, which quickly gained over 2.4 million views, claimed that Elon Musk’s SpaceX sold all of its Bitcoin assets at $373 million.
However, putting all of the blame on SpaceX’s misinformation may be oversimplified. CryptoQuant.com analysis revealed symptoms of an expected value decrease far before this information occurred.
Timmer of Constancy remains bearish.
Furthermore, Jurrien Timmer, a market expert, stated that Bitcoin has been lingering above the $30,000 mark for some time, implying that it could be selling ahead of its intrinsic worth based largely on actual charges and community development criteria. The time premium for bonds, which remains unfavorable, is particularly relevant in this context.
With all of these variables at play, Bitcoin‘s trajectory is as uncertain as ever, emphasizing the importance of traders exercising caution.