Market analysts say Bitcoin (BTC) is showing “draining momentum” after falling 8% from its multi-month high of over $82,000, and bulls are expected to defend key key support levels.
Important points:
Bitcoin’s momentum weakens after being rejected above the $82,000 level. Analysts warn that BTC could fall to $65,000 if the support between $74,000 and $76,000 fails.
Bitcoin price momentum is “weakening”
Private asset management firm Swissbloc said Bitcoin’s momentum is weakening. Failed to “sustain expansion” over $82,000.
swiss block said Bitcoin’s positive momentum is losing momentum with each bounce. Recently fell to $76,000.
Related: Bitcoin price remains below $77,000 as US Treasury yields near 20-year high
Bitcoin is currently trading at $77,200, with immediate resistance at the true market average and short-term holder cost base of around $78,000.
“Bitcoin is losing its ability to regenerate strong positive momentum internally,” the wealth manager said, adding:
“Momentum depletion is not a failure per se; it is a process that usually precedes a failure.”
Bitcoin performance impulse. Source: Swissbloc
Reflecting this observation, analyst Axel Adler Jr. noted that Bitcoin’s slow impulse performance indicator “has turned negative for the first time since April,” adding:
“Just as macro pressures are rising, momentum is weakening. We won’t see any upside unless it returns faster than zero.”
Bitcoin impulse performance. Source: CryptoQuant
Bitcoin’s price momentum indicator has also declined significantly, dropping 29% from 66.7 to 47.1 last week, indicating a “transition from strong upward momentum to weakening momentum,” Glassnode said. said The latest Market Pulse report adds:
“Bitcoin market structure is beginning to soften as overall market momentum, spot demand, and speculative positioning weaken.”
Bitcoin price momentum. Source: Glassnode
Key Bitcoin support levels to watch
as cointelegraph reportedBitcoin has repeatedly acted as significant support over the past two years, so any upside for Bitcoin will depend on whether the bulls push the price above the $74,000-$75,000 zone.
Here you will find the major moving averages such as the 50-day Exponential Moving Average (EMA), 100-day EMA, and 50-day Simple Moving Average (SMA) as shown in the chart below.
This confirms the importance of this demand zone and the fact that BTC/USD has not fallen below yet, and “may be the most bullish one” for Bitcoin as a trading resource. said In recent X posts.
BTC/USD daily chart. Source: Cointelegraph/TradingView
The second area of interest is between $72,000 (100-day SMA) and the psychological level of $70,000.
If this level is lost, BTC price could fall to $65,000 Alternatively, it could then revisit the macro low below $60,000 hit on February 6th.
Analyst Darn Crypto Trades Bitcoin said the BTC/USD pair will “immediately” retest the $72,000 level if the support at $75,000-76,000 is lost.
BTC/USD daily chart. Source: X/Daan Crypto Trading
Trader CryptoAmsterdam zoomed out and said it would be “good” if the BTC/USD pair held support between $74,000 and $76,000 (orange area on the 3-day chart below), with other defensive ranges around $72,000.
Analysts have set downside price targets at $60,000 and $50,000 in case these support levels are broken.
BTC/USD 3-day chart. Source: X/CryptoAmsterdam
as cointelegraph reportedthe key support level for the bulls is the 50-day SMA at $75,600, and a loss of this could send the BTC/USDT pair down to $65,000.
