Bitcoin (BTC) Price At Risk of Dropping to $44K as It Loses Critical Support Level

Crypto analyst “Blockchaineddbb” has provided a noteworthy assessment of the situation. According to the analysis, a daily close below the 200 daily exponential-moving average (EMA), currently positioned at $58,000, indicates a strong likelihood of Bitcoin’s price dropping to $44,000.

The cryptocurrency market experienced a setback on Friday as the Bitcoin price continued to plummet, trading below the critical 200 daily exponential moving average (EMA) of $58,000. This downward move raised concerns among bullish investors, suggesting a potential continuation of the downtrend toward the $44,000 support level.

Bitcoin’s failure to consolidate above and retest its all-time high (ATH) of $73,700, reached in March, has resulted in a retracement of over 20% on the monthly time frame. This steep decline has put the 200 daily EMA in the spotlight as a crucial determinant of the market’s next direction.

According to crypto analyst "Blockchaineddbb," a daily close below the 200 daily EMA indicates a strong likelihood of Bitcoin's price dropping to $44,000. The analyst cautions against waiting for a bounce after the daily close below the 200 daily EMA, highlighting the historical significance of such a breach.

Each time Bitcoin experienced this loss, its price declined by an average of 30%, with losses ranging from 8% to 50%. The breach of the 200 daily EMA signals Bitcoin entering an unsafe territory, heightening investor concerns.

To mitigate potential losses, the analyst suggests considering an exit point before the expected further decline to $50,000, which is the next significant support level.

For those who choose to hold their positions during the bearish sentiment, Blockchaineddbb provides average support levels to consider: $50,000, $48,000, and $44,000, with the latter being the worst-case scenario.

Long-term holders are advised to stick to their planned averaging strategy, which involves accumulating positions on specific dates throughout the year, such as June 22, September 22, and December 22. The target exit price remains at $75,000, with expectations of achieving this milestone by December.

Considering various factors, such as a predicted September dump, the Mt. Gox settlement deadline, and upcoming elections, the analyst suggests that the prevailing bearish sentiment will persist until December.

Ultimately, if the current bearish sentiment continues, altcoins are expected to suffer losses until the year’s end. A potential shift in this scenario would only occur if Bitcoin manages to close above the 200 Daily EMA, but the probability of that happening appears low.

Currently, the BTC price is trading at $56,435, just below the critical EMA, after falling as low as $53,500 in the early hours of Friday's trading.

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