As selling pressure continues in the Bitcoin and cryptocurrency market, market maker Wintermute has made important assessments regarding Bitcoin’s technical outlook. The company stated that investors should act cautiously as Bitcoin remains below its 50-week moving average.
Wintermute Issues Critical Warning for Bitcoin!
Wintermute noted in its weekly report that Bitcoin fell to levels around $73,500 during the weekend sell-off. However, BTC managed to hold above the approximately $73,000 level, which is tracked as the 200-day moving average.
However, Bitcoin’s weekly close was below its 50-week moving average, which is around $75,500. This ended BTC’s streak of remaining above its seven-week average.
At this point, Wintermute predicts that if Bitcoin falls below its 200-day moving average of around $73,000 on a daily closing basis, the next low could be $68,000.
Wintermute also noted that factors such as net outflows from US spot Bitcoin ETFs, the possibility of higher interest rates, and the risk of further declines in altcoins are among those increasing pressure on BTC and cryptocurrencies.
Positive Outlook for Bitcoin Above $80,000!
In contrast to the bearish scenario, Wintermute stated that the market outlook could turn positive if Bitcoin closes above $80,000 daily and spot ETFs see net weekly inflows again.
However, the company added that it is maintaining a cautious stance for the time being.
“…We remain cautious as BTC trades below its 50-week moving average. While the next low is $68,000, a recovery above $80,000 could change this view.”
*This is not investment advice.
