Bitcoin (BTC) experienced a significant drop from the $80,000 level, falling as low as $74,500.
Some argue that this decline is a correction, while others see it as a sign of a bear market.
At this point, market analysts James Van Straten and Omkar Godbole predicted that Bitcoin could be in a bear market and that the bottom would likely be around $60,000.
Analysts who used 200-week moving average data for this prediction said that the 200-week moving average price is widely used because it is a long-term momentum indicator and forms the basis of the traditional four-year Bitcoin cycle.
According to analysts, the 200-week moving average has marked the market bottom in every previous cycle and is currently at $57,926.
At this point, analysts said that according to historical data, Bitcoin peaked in the fourth quarter of its fourth cycle year, reaching a peak of $126,000 in October, and is currently down about 40% from that peak.
Analysts said that with the recent drop, the Bitcoin price has fallen below the Ichimoku Cloud on the weekly chart, which indicates a bearish trend.
This downward movement also marks the beginning of one of the most painful bear market periods in history.
At this point, analysts said that the decline in Bitcoin would continue, but historical data indicated that Bitcoin could find support and bottom out at the 200-week moving average, or around $60,000.
Historical data shows that during the Bitcoin bear markets of 2015, 2019, and 2022, the 200-week moving average marked a price bottom, and BTC maintained this level as support.
*This is not investment advice.
