Bitcoin Breaks Below 50MA – Is This the Bear Market’s Final Warning?
Bitcoin just flashed a critical technical signal—and traders aren't happy. The king of crypto sliced through its 50-day moving average like a hot knife through institutional FUD. Here's why this matters.
Technical breakdown or buying opportunity?
The 50MA isn't just another squiggly line on the chart. It's the dividing line between 'healthy correction' and 'oh crap' territory. When BTC can't hold this level, algos start dumping, leverage gets liquidated, and your uncle starts texting you about gold futures.
But let's be real—since when does Bitcoin follow the script? Every 'final bearish signal' in history eventually became a footnote below the next ATH. The market's pricing in rate cuts that may never come, because nothing says 'sound monetary policy' like central bankers making up rules as they go.
Watch the weekly close. If bulls can't reclaim this level fast, we're testing the 200MA. And if that breaks? Grab popcorn—the 'Bitcoin is dead' articles write themselves.
Bitcoin Set For 26% Crash?
In an X post on June 21, Scott Melker shares a cautionary insight on the Bitcoin market hinting at a bearish long-term outlook. The season analyst reports that data from TradingView shows that Bitcoin’s has now closed below the 50-day moving average (50 MA) on the daily trading chart, a development that last occurred two months ago when Bitcoin traded around $84,000. The 50MA is a commonly used technical indicator that represents the average closing price of an asset over the past 50 days. As a lagging indicator, it helps traders identify the prevailing market trend. When the price remains above the 50 MA, it typically signals a bullish trend, while a move below the 50 MA may indicate bearish momentum or a potential trend reversal.
Interestingly, Melker notes that bitcoin last lost the 50 MA as a support zone in early February trading around $100,000. However, the loss of this price floor triggered an immense selling pressure forcing Bitcoin into prolonged market correction to reach market low of $74,000 in April. Amidst the current market uncertainty, the recent daily price close below 50 MA strengthens bearish sentiments suggesting Bitcoin is due for another potential 26% crash. In that case, investors could expect a downside target of around $76,200. To invalidate such bearish projections, Bitcoin must continue to hold above the $100,000 resistance level, fueling the chances to retest the current all-time high, and perhaps re-enter price discovery mode.
Bitcoin Price Overview
At press time, Bitcoin is trading at $102,889 after a 1.43% decline in the last day. In tandem, the asset’s daily trading volume has crashed by 29.30% and is presently valued at $35.15 billion. With a market cap of $2.02 trillion, the “digital gold” continues to rank as the largest cryptocurrency and fifth largest asset in the world. However, according to prominent market analyst Ali Martinez, Bitcoin may actually be slipping into bearish territory as similarly predicted by Scott Melker. Based on insights from the MVRV pricing bands, if the market lose the current support at $102,000, it opens the door to a potential decline toward $82,000.
