Bitcoin may ‘final flush’ to $104K before the bull market returns

💡 DMK Insight

Bitcoin’s potential drop to its 50-week moving average is a critical juncture for traders. With analysts highlighting leverage concerns, this could trigger a cascade of liquidations if the price approaches that support level. Historically, the 50-week moving average has acted as a strong support zone, and a breach could lead to increased bearish sentiment across the market. If Bitcoin falls significantly below this level, it might not just impact BTC but could also drag down altcoins like Ethereum, which often move in tandem with Bitcoin’s price action. Traders should keep an eye on the leverage ratios and open interest in futures markets, as spikes could indicate heightened risk of a sharp move. Here’s the thing: while the bearish outlook is prevalent, a bounce off the 50-week moving average could set up a strong buying opportunity for swing traders looking to capitalize on a reversal. Watch for price action around this key level in the coming weeks, as it could dictate the next major trend for Bitcoin and the broader crypto market.