Bitcoin Price Drops Below 200-Week Moving Average Amid Economic Uncertainty

Bitcoin's price has dropped below its 200-week moving average, a trendline that was also broken in 2022. This comes as the cryptocurrency starts the new week at around $63,000.

The 200-week moving average is a significant long-term trendline that has been acting as resistance for Bitcoin. Analyst Benjamin Cowen pointed out on X that this trendline was also broken in both summer 2022 and 2026, before Bitcoin entered its long-term bottoming phase.

Trader and analyst Rekt Capital noted that the price failed to reach his weekly-close target of $63,220, positioning for further downside in future. The current trading range is between $58,000 and $66,000, with a rejection from $63,220 potentially sending the price lower within this range.

The upcoming week will also see the release of preliminary Purchasing Managers' Index (PMI) data for the manufacturing and services sectors, as well as the minutes of the Federal Reserve's July meeting. Markets are pricing in near-70% odds that the Fed will hold rates at their current 3.50-3.75% range.