Three things that must happen for Bitcoin to avoid bear market

💡 DMK Insight

Bitcoin’s stability hinges on its ability to stay above the 200-week EMA, and here’s why that matters right now: The 200-week EMA is a crucial support level for Bitcoin, acting as a long-term trend indicator. If Bitcoin slips below this level, it could trigger a wave of selling, pushing it deeper into bear territory. Traders should be closely monitoring liquidity conditions, especially with the Fed’s potential stealth QE on the horizon. If liquidity returns post-shutdown, it could provide the necessary fuel for a bullish reversal. However, if the Fed remains tight-lipped or if liquidity doesn’t improve, we might see increased volatility and further downside risk. It’s also worth noting that Bitcoin’s price action could influence correlated assets like Ethereum and altcoins, which often follow Bitcoin’s lead. A breakdown below the 200-week EMA could lead to a broader market sell-off, impacting these assets significantly. Keep an eye on this level and the Fed’s next moves; they could dictate market sentiment for weeks to come.