Incoming Bitcoin crash? Key indicator hints at drop to $95,000
Main Idea
Bitcoin's price is showing warning signs as technical indicators suggest potential declines, with historical patterns indicating possible drops of 20-30% from recent highs.
Key Points
1. Bitcoin's weekly Relative Strength Index (RSI) has dropped below the 14-week Simple Moving Average (SMA), a pattern that previously preceded significant declines.
2. Similar RSI breakdowns in June and December 2024 led to price drops of nearly 23% and over 25%, respectively.
3. On-chain data shows dormant whales moved 3,000 BTC on August 5, reinforcing concerns of a market top.
4. Bitcoin is currently trading at $114,188, slightly above its 50-day SMA of $112,473, but the 14-day RSI at 46.56 indicates weakening momentum.
5. The broader cryptocurrency market downturn and Bitcoin's failure to hold the $115,000 level add to the bearish outlook.
Description
As Bitcoin ( BTC ) continues to enjoy an extended stint above the crucial $110,000 support zone, technical indicators are flashing warning signs. This comes as Bitcoin retreated further from the $120,000 resistance level amid a broader cryptocurrency market downturn. Looking at the price outlook, the asset’s weekly Relative Strength Index ( RSI ) has dropped below the 14-week Simple Moving Average ( SMA ), a pattern that has historically signaled downturns in Bitcoin’s price, according to an ana...
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