Bitcoin Dives Below 200-Week Trend Line as Bear Market Repeats
Bitcoin (BTC) opened the week at around $63,000 but lost ground as it fell below its 200-week moving average. This bear market trend is repeating a pattern seen in 2022 when BTC entered a long-term bottoming phase.
The current price action has been stuck in a narrow trading range between $57,700 and $67,300. Analyst Benjamin Cowen noted that both summer 2022 and 2026 saw Bitcoin capitulate below the 200-week simple moving average (SMA) before bouncing back and eventually giving up in mid-August.
Trader Rekt Capital pointed out that price failed to reach his weekly-close target of $63,220, positioning for further downside in future. He added that a rejection from this level would confirm the breakdown and send price lower within the current range.
The Federal Reserve's July meeting minutes are due this week, which may impact markets as they pricing in near-70% odds of a hold by the Fed in September. Japan's Q2 GDP figures fell short of expectations at 1.1%, with analysts warning of 'global tightening' that could affect Bitcoin and risk assets.