BTC/USD falls under its 200-week SMA, a level last breached during the 2022 bear market, signaling potential downside risks.
Bitcoin slipped below its 200-week simple moving average (SMA) after closing the week under the key technical level, mirroring patterns seen during the 2022 bear market. BTC/USD rebounded to $63,655 but failed to hold above $63,220, a threshold analysts flagged as critical for avoiding further declines.
The 200-week SMA acted as resistance in August 2022 before Bitcoin entered a prolonged bottoming phase. Analysts note similarities between the current price action and the 2022 summer capitulation, where BTC briefly recovered before resuming its downtrend. The pair now trades within a $58,000-$66,000 range, with downside risks emphasized if $63,220 is rejected.
Traders await Friday’s PMI data and Fed minutes, which could influence broader market sentiment and Bitcoin’s short-term trajectory.