Prominent cryptocurrency trader Mercury shared concerns about Bitcoin’s BTC/USD recent rejection from range highs, highlighting the threat of losing key moving averages.
What Happened: The trader noted that Bitcoin’s price had rejected off-range highs and was now at risk of losing the 4-hour 200 moving averages (MAs). He emphasized that this trend had previously allowed him to predict a significant price movement at $63,000 a month ago.
Trader Mercury warned that if Bitcoin fails to stay above this trend, it could lead to a downward movement towards range lows around $61,000.
He stressed the importance of defending the weekly market structure, cautioning that a breakdown below the range and loss of 200 DMAs could signal a significant bearish trend not seen in over a year.
He outlined the steps to watch for, including the potential for prolonged consolidation and the risk of a bearish shift if the range lows do not hold.
Also Read: Five Critical Ethereum, Solana Altcoin Trends To Know
Why It Matters: Trader Mercury concluded by stating that if Bitcoin spends three months consolidating below previous cycle all-time highs, fails to break out, and shifts the weekly trend bearishly, it would be difficult to maintain confidence in a bull market. He quotes, "Then I would not feel confident saying "we’re still in a bull market. One step at a time, for now."
The trader highlighted that the uptrend portrayal that has been intact since October 2023 and the shift in weekly trend is bearish first time since November 2022.
Trader Mercury’s warning about a potential bearish trend highlights the importance of monitoring key technical levels and market structures.
Price Action: In the past 24 hours, BTC is up 3.7%, trading around $69,524.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Billionaire Bill Miller Thinks Bitcoin Is Still ‘Significantly Undervalued’
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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