For the first time since early January, Bitcoin is changing hands below a critical support band and the 20-week moving average, evident in the weekly chart.
An analyst on X, formerly Twitter, pointed out this formation and has since raised questions about the coin’s prospects in the days and weeks ahead. Bitcoin is trading at around $26,000, down 18% from July 2023 peak. The situation remains tense for coin holders as the price pressures continue to mount.
Bitcoin Breaks Below Critical Support Levels
Looking at price action in the weekly chart, sellers are in control and actively aiming to erase gains posted between June and July 2023. At this pace, it won’t not only mean more pressure on holders but more liquidations for long positions in derivatives exchanges, impacting sentiment and thus lowering overall liquidity across the crypto scene.
