According to data from the analytics firm CryptoQuant, the Bitcoin price has reached the historically significant 200-day moving average (MA) resistance level. This situation warns that a downward trend could begin in the cryptocurrency market. After falling to the 66,000 USD level in early April, Bitcoin recovered within six weeks and approached the critical threshold around 82,400 USD. This is reported by reported by.
Analysts recalled the 2022 bear market period. At that time, Bitcoin also began a sharp price decline after reaching the 200-day MA level. The current situation suggests that history may repeat itself. Furthermore, the unrealized profit margin of traders has reached 17.7%, which could lead to increased selling pressure as investors look to cash in profits.
In the last 24 hours, the Bitcoin price fell by 2.3% to 79,300 USD. The producer price index released by the U.S. Department of Labor rose by 1.4% in April, fueling inflation concerns. This is negatively impacting the sentiment of Wall Street investors toward crypto assets.
According to the report, traders have already begun taking profits. On May 4, it was recorded that 14,600 Bitcoin were sold, equivalent to nearly 1.2 billion USD. If prices fall further, the next strong support level for Bitcoin is expected to be around 70,000 USD.
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