While the leading cryptocurrency, Bitcoin, was on a fluctuating course, it experienced a decline to $62,300 yesterday evening.
After this decline, BTC recovered and the price rose above $65,000.
While the tension in the Middle East is considered to be behind the recent decline, Bitcoin is trading close to $64,000 and close to its 50-day moving average, which is an important technical support level for investors.
Evaluating the decline in Bitcoin, FxPro senior market analyst Alex Kuptsikevich shared possible scenarios for BTC.
Speaking to CoinDesk, Kuptsikevich said that $63,000 and $61,000 are critical and should be followed if the decline in Bitcoin continues:
“If the decline in Bitcoin continues, the dynamics and reactions near the 50-day and 200-day moving averages at $63,000 and $61,000 will be important.
“If these support levels fail, Bitcoin could go to $55,000, which is very scary.”
Pointing out that historically August has been considered one of the two worst months for Bitcoin, the analyst stated that in the past 13 years, Bitcoin has risen only 5 times and fallen 8 times a month.
Bitcoin continues to trade at $64,350 at the time of writing.
*This is not investment advice.