It has been a long time since sentiment around Bitcoin (BTC) and other cryptocurrencies was as bleak as it is today. But some say the sentiment is going to get a little worse. crypto analyst DataDash is one of those people. In a new analysis on his YouTube channel, he explains why.
Bitcoin is in uncharted waters
To begin Bitcoin’s price has fallen significantly below the 200 weekly moving average for the first time in the token’s history. Even in March of 2020 or in 2018. Those were the lows of those bear markets at the time. Now that moving average is resistance so no positive news. It indicates that a deeper bear market than you might expect has become a real possibility.
According to DataDash, the next major support line is at $14,000. That corresponds with what we expected last summer. There is still a support line at about $19,000, but we’ve already reached it. That was the peak of the 2017 bull market. Below this is an area with a lot of support between $14,000 and $10,000 – DataDash puts the limit at $12,000.
Judging by this, the YouTuber thinks we’re in uncharted waters. So anything can happen, but it indicates that we probably won’t see an all-time high again anytime soon. Bitcoin has now developed a lot of resistance to that.
Dollar worth more than euro
We should also emphasize that the dollar seems to be slowly gaining ground from the euro. If that continues, it would mean that the euro price of bitcoin will rise above the dollar price – something that has so far been reversed. That’s basically good news from a European perspective, but you might wonder if you wouldn’t be better off holding dollars in a bear market in that scenario.
In a Premium analysis for members, we described in July that the euro could fall much further against the dollar.
