- Bull market may be over if Bitcoin closes the week under the 200-day moving average
- Bitcoin may find support once it hits the $27,000 – $28,000 level
- Failure to recover is a signal for the bear market according to the analysis
An analyst from ethereumworldnews.com pointed out that Bitcoin may find support in the $27,000 to $28,000 level. According to the report, if BTC doesn’t recover from the current market dips, it may be the signal of the start of a bear market.
At the time of writing, Bitcoin is hovering around the $33,000 mark as shown on coin information websites like CoinMarketCap and CoinGecko.
The new dip to $33k theoretically increases the chances of Bitcoin retesting what happened last Wednesday’s when Bitcoin hit a low of $30k. This happened during the weekly close which is now very near as well.
If we also look at Bitcoin’s charts, it recently failed to recover the 200-day moving average line as we can see in the following image.
Twitter Bitcoin analyst called MagicPoopCannon also believes that if Bitcoin cannot recover, it might signal the start of the bear market. According to the tweet, “BTC is failing to recover above the 200-day MA and is way below the 20 week. If it can’t recover, it will be the death knell for the bull market. Failure to recover above these averages is a classic early bear market signal.”