Bitcoin (BTC) continues to experience a massive price correction that lost more than 7% of its market value last month. The flagship cryptocurrency is struggling to regain its bullish form after setting a new all-time high that leads to potential market-leading speculation. Interestingly, popular market analysts and host of the Wolf All Street Podcast Scott Mercer recently shares market developments that support such bearish concepts.
Bitcoin set to 26% crash?
In a June 21st X post, Scott Melker shares attentional insights on the Bitcoin market, suggesting a bearish long-term outlook. Season analysts report that TradingView data shows Bitcoin is below the 50-day moving average (50 MA) of the daily trading chart.
50MA is a commonly used technical indicator that represents the average closing price of an asset over the past 50 days. As a measure to keep behind, it helps traders identify common market trends. A price above 50 MA usually shows a bullish trend, while a move below 50 mA may indicate a bearish momentum or a reversal of a potential trend.
Interestingly, Mercer says Bitcoin last lost 50 MA as a support zone in early February in a trade of around $100,000. However, this price range loss caused enormous sales pressure that forced Bitcoin to sell for a long-term market correction, bringing the $74,000 market down in April.
Amidst the current market uncertainty, recent daily prices fall below 50 MA, reinforces bearish sentiment suggesting that Bitcoin is due to another potential 26% crash. In that case, investors can expect a downside target of around $76,200. To override such bearish predictions, Bitcoin will still hold above the $100,000 resistance level, increasing the likelihood of retesting its current highest height, and perhaps re-entering the price discovery mode.
Bitcoin price overview
At the time of pressing, Bitcoin is trading at $102,889 after a 1.43% drop on the last day. In collaboration, the daily trading volume of assets crashed by 29.30%, currently valued at $351.5 billion. Its market capitalization is $2.02 trillion, and “Digital Gold” continues to rank as the world’s largest cryptocurrency and fifth-largest asset.
But, according to renowned market analyst Ali Martinez, Bitcoin may actually slip into bearish territory, as predicted similarly by Scott Mercer. Based on MVRV price range insights, if the market loses current support at $102,000, the door opens to a potential decline to $82,000.
Pexels featured images, TradingView charts
