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▲ Bitcoin (BTC)/ChatGPT generated image
Market tension is escalating as Bitcoin (BTC) retests a key support zone that it has historically never breached.
According to the cryptocurrency specialized media Bitcoinist on April 26 (local time), Bitcoin has entered a critical turning point, approaching a specific price band that it has never fallen below in its long-term cycle. This zone is considered a crucial lower support line that has been consistently defended even during past bear market phases.
The data used for analysis is an indicator combining long-term moving averages and an on-chain based valuation model, which has served as ultimate support whenever the market transitioned from an overheated phase to a cooling phase. Indeed, in previous cycles, Bitcoin formed a rebound after touching or approaching this range, and there have been no instances of it closing below this level.
The current price structure is interpreted as a retest of this historical support zone. Particularly, if this zone holds amidst recent downward pressure, there is a possibility of forming a mid-to-long-term bottom, similar to the past. Conversely, if a breach materializes, the possibility of entering a new phase, different from the existing cycle pattern, is also raised.
Market participants view the defense of this zone as a key variable for gauging future direction. If this level holds, it could lead to an inflow of long-term investors and price stabilization. However, there is also a view that if it collapses, further downward pressure will be inevitable.
Bitcoin has maintained the same bottom structure in repeated cycles to date, and whether this pattern will continue this time is emerging as a critical turning point for the market.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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