BITCOIN Is $50000 inevitable??
$BTC (BTCUSD) is again on the downturn after almost reaching its 1W MA200 (orange trend-line) just last week. One would thought that long-term buyers would make their presence clear on this historically supportive level but so far their absence is more than emphatic. If this continues, the market eyes the next critical Support level, the 1W MA350 (red trend-line), which is where the previous 2022 Bear Cycle bottomed.
In fact, we identify a quite similar pattern on $BTC 's last three major correction events (2022 Bear Cycle and late 2019 - early 2020 on COVID flash crash). As you can see a Double Top rejection followed by a Higher Lows trend-line bearish break-out has been the common pattern on all (including the current correction). The previous two both broke below the 1W MA200 and their respective 1.618 Fibonacci extension levels, with the 2022 fractal bottoming just above the 1.786 Fib ext while the 2020 below it. In both cases, the 1W MA350 held.
As a result, if buyers continue to be absent and BTC is getting heavily sold after every short-term rally, we can expect the market to target $50000, which isn't just the next psychological level but also just above the current 1.786 Fib and will still be above the 1W MA350 (based on its current trajectory).
So do you think a $50k test is inevitable at this point? Feel free to let us know in the comments section below!
