Bitcoin, which has been experiencing consecutive declines in recent days and has fallen below the psychological level of $100,000, also fell below the $95,000 level during the day, falling to its lowest level in six months.
While Bitcoin fell to the $93,000 level, Singapore-based analysis firm QCP Capital evaluated the latest situation of Bitcoin.
QCP analysts initially noted that Bitcoin continued its decline last week, falling 27% from its all-time high and nearly wiping out its gains for the year.
Bitcoin fell 27% from its all-time high, closing below $100,000 for the first weekly close since May. Market sentiment turned bearish after the 50-week moving average was broken.
Analysts have recently noted that prices are often driven by narratives, with rumors that the end of the four-year cycle is nearing further fueling the prevailing bearish trend.
At this point, analysts noted that the key levels for Bitcoin are the $92,000 support and the $88,000 CME gap.
QCP Capital also noted a clear hedging bias in the options market, stating: “BTC short-term implied volatility remains above 50, and the trend remains largely towards Put options. This suggests increasing demand for downside protection.”
Analysts recently pointed to two trend-setting levels for Bitcoin. While a break above the 50-week MA would strengthen the medium-term bearish trend, confirmation of a long-term trend reversal still hinges on whether BTC can break the key supports at $88,000 and $74.5,000.
*This is not investment advice.