• Bitcoin (BTC) is facing further downside risk after a weekly close below its 200-week moving average.
• According to crypto analyst Rekt Capital, the 200-week MA is a robust resistance zone for BTC price.
• If bears manage to turn this zone into new resistance, there is a chance of BTC seeing a “two-step breakdown confirmation” which would lead to more losses.
Bitcoin Signals Potential Breakdown
Bitcoin (BTC) is positioned for further downside as a new Weekly Close below the 200-week moving average signals. BTC rejecting from above $26k would welcome bears to the party as double-confirmation of the breakdown.
200-Week Moving Average As Robust Resistance Zone
According to crypto analyst Rekt Capital, the 200-week MA is a robust resistance zone. As Bitcoin bulls face rejection from above $26k, a top analyst has pointed out the benchmark cryptocurrency’s price faces fresh downside pressure.
Potential For Further Downside Pressure
BTC price is currently 2.4% up in the past week, but has failed to break past key resistance around $26,600. The breakdown to lows of $24,800 last week amid negative regulatory headlines appears to have only emboldened bears further.
Breakdown Confirmation Could Send Price Lower
According to Rekt Capital, if bears manage to turn this zone into new resistance, there was likelihood BTC could see a “two-step breakdown confirmation.” Such a price scenario was likely to result in further downside pressure.
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Possibility Of Extended Sideways Move
However, as BitMEX founder and former CEO Arthur Hayes pointed out last week, its likely crypto will hit the pain of an extended sideways move if Bitcoin gives up the $26k level again and runs back down towards June lows.
