Many see Bitcoin’s ‘glory days’ to have passed as it’s now well below its ATH of $64,000.
As of writing, 1 BTC is worth $56,333, which is higher by 6.3% over its previous price of $53,000 on Thursday. With this, analysts agree that Bitcoin faces a make-or-break moment as it struggles to go past the $60,000 barrier.
Some might argue that this isn’t the case, as the coin rebounded above its average value over the first quarter of 2021.
However, it’s also worth noting that BTC still trades lower than its 50-day moving average (MA). Movements such as this usually mean that the coin nears its inflection point, which can create sudden turning points for its value. This can either spiral upward or plummet and go even more bearish.
Further, experts said that Bitcoin’s volatility would increase if it can’t go beyond its 50-day mean of $57,000.
Looking at the bright side, though, BTC is already near that figure as it’s hovering above the $56,000-mark.
Crypto Market Sell-off?
Bears, of course, are always on the pessimistic side. BTC’s evident slowdown below the 50-day MA is the bears’ argument for a top crypto sell-off.
Ethereum, the second-most popular digital asset fell slightly to $2,755 from its all-time high of $2,777 but is up 13% over the last week. Compare that to BTC’s minuscule 1.75% hike in seven days, and it shows a clear case of how the top crypto is losing steam.
Diginex Sales Chief Matt Blom even said that Bitcoin’s movements could dictate the price of the other altcoins if it heads back down to $50,000.
Tracking Bitcoin’s Lifecycle Trend
Bearish crypto analysts expect Bitcoin to have another massive collapse similar to what happened in 2018 when the price fell from $16,000 to just $3,000. This comes as spiraling trends have become very similar to 2018’s price movements.
However, some bullish traders think otherwise as they argue that cryptos are now treated differently. Bulls said that more institutional investors and global trading firms are now using Bitcoin, which then creates a more stable market.