Bitcoin Price Prediction: Can 200-week moving average bring support BTC desperately needs? – FXStreet

Ekta Mourya Ekta Mourya
FXStreet

UPDATE: The most pessimistic Bitcoin price predictions are turning into fulfilled prophecies as the whole crypto market is continuing to see aggravated losses on Monday after an abysmal weekend. BTC price has just broken below $25,000 for the first time since reaching this level back in the huge rally of December 2020. Several reasons are adding up to the major risk-off sentiment dominating most financial markets to put pressure on the cryptocurrency market, including highly leveraged markets, scams and collapses like the Terra one, and other stablecoin pegs under pressure like Tron's USDD. Therefore, the unwinding of such a historic rally continues and the big question is where will Bitcoin and the crypto market bottom out? Popular crypto twitter analyst and trader @RektCapital has a potential answer: the 200-week moving average. 
#BTC has broken down from the ~$29000 Monthly support (green)

Next major Monthly level below is the ~$20000 level (orange)

However in between these two major Monthly levels is the 200-week MA which has a good historical track record of marking out bottoms$BTC #Crypto #Bitcoin https://t.co/m76RppBF0T pic.twitter.com/c5dEAt7Ru1
Bitcoin price continues to bleed as crypto market capitalization declines. Analysts believe Bitcoin and altcoins could witness further pullback in the short term. 
Justin Bennett, a leading crypto market analyst, told over 100,000 Twitter followers that the ecosystem could witness significant pullback, wherein Bitcoin and altcoins lose a massive chunk of their value. 
Bennett believes the Bitcoin price is in the midst of a breakdown from a bearish continuation pattern, and $1 trillion is a psychological level for the crypto community. The breakdown occurred today, where over 5% of the crypto market’s capitalization was wiped out, and nearly $950 billion was drained out of the ecosystem. 
Bennett argues that $1 trillion is the area that offers a crucial support level for the entire crypto market. He was quoted as saying:
[The] $1 trillion [level] was also the most heavily traded level during the early 2021 consolidation.
Crypto market capitalization in USD
Crypto market capitalization in USD
Bennett argues that altcoins will take the brunt of the correction. 
Bottom line: another 15% lower from the entire crypto market seems likely before we can start talking about the potential for relief. Remember that BTC will be the closest to that -15% mark. Alts, especially lower caps, will probably outpace it by 1.5-2x.
Bennett has predicted a 15% correction in Bitcoin price, where the asset hits a fresh yearly low of $23,500. Altcoins could lose 22.5% to 30% of their value. 
@BigCheds, a pseudonymous crypto analyst, evaluated the Bitcoin price chart and identified an inverted hammer. The analyst concluded that the pattern is bearish for Bitcoin price and expects a decline in BTC. 
BTC-USD chart
BTC-USD chart 
FXStreet analysts believe Bitcoin price could decline to the $12,000 level; for more information, watch this video:
 

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Polygon (MATIC) price action has been on treading nervously this week, with weekly earnings switching back and forth between profit and loss. It all comes down to trading this Friday to see if bulls can eke out a winning week.
Shiba Inu price positively reacted to the United States inflation report, forming a bullish candle on its daily chart. The second-largest meme coin brushed shoulders with $0.00001287 but pulled back to test support highlighted by the 100-day Simple Moving Average (SMA) at $0.00001170.
Crypto.com Coin (CRO) price action is looking to execute a bullish breakout above $0.16. Ignorant bulls will try to be part of that rally, but that could prove a big mistake as a few risks need to be taken into account to be sure that this rally still has legs.
Solana (SOL) price action is set to close out the week with a mere 7% gain depending on where it ends  Friday evening after the US closing bell. Overall it has been a good trading week from a fundamental perspective and technicals in a supporting role.
Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  
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