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As economic instability escalates worldwide, Bitcoin (BTC) seems to be in the sight of market bears. Eschewing Donald Trump’s crypto-related measures, a significant backward move is reportedly anticipated by market analysts. At the moment, the focus is drawn to the 200-day moving average, the interpreted barometer of long-term health for Bitcoin.
Bitcoin’s resilience has been tested time and again, and it appears to be under a wave of negative pressure once more. With a downward swing expected, Bitcoin bears are said to be looking at a pullback to the 200-day moving average around $44,000. This prospect seems likely considering broader macroeconomic issues are overshadowing crypto achievements like Bitcoin’s market dominance and Trump’s recent moves related to digital currencies.
The global economic environment continues to provoke fear, with rising inflation and geopolitical tensions threatening to pull the cryptocurrency market down. This context is sparking a growing interest among traders in short-selling Bitcoin, further driving the market into a bearish trend. This trend was seen in September 2021 too, when Bitcoin drop to its 200-days moving average figures, signaling a potential bear market for Bitcoin in the coming days.
Despite President Donald Trump’s recent regulatory actions on cryptocurrency, the current economic climate takes the spotlight. Bitcoin investors and traders are seemingly concentrating more on macroeconomic factors than specific crypto regulations or advances. While it is critical to track and understand the impact of government regulations on the crypto market, BTC’s price appears to be more reactive to broader market and economic indicators. Thus, a dip below the significant 200-day average could potentially indicate a longer downtrend.
Source: CoinDesk
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