According to Jean-David Péquignot, the Chief Commercial Officer of Deribit, a derivatives exchange, Bitcoin’s long-term upward trend has been disrupted and will remain so until it surpasses the $85,000 mark.
The leading cryptocurrency has recently stabilized within the range of $60,000 to $70,000. This is approximately 45% lower than its all-time high recorded in October. It appears to be on course for a fourth consecutive week of decline after dropping below $85,000 at the end of January.
Péquignot stated during an interview at the Consensus Hong Kong conference that “the longer-term chart remains broken until we see a reclaiming of $85k,” emphasizing that technically speaking, there is less resistance moving downward.
A rise above $85,000 would indicate that buyers have regained control by absorbing all available supply that negatively impacted long-term projections. Currently priced around $66,600—significantly below Péquignot’s critical threshold—Bitcoin finds itself entrenched in bearish territory with potential for further declines.
In terms of support levels, Péquignot pointed out that $60,000 represents a significant psychological barrier where substantial buy orders have historically been placed. This level nearly came into play earlier this month as Bitcoin declined alongside technology stocks.
“If we fail to maintain above $60k on a closing basis,” he warned, “the next logical stop for this correction could be the 200-week moving average.”
The 200-week simple moving average (SMA) is often seen as crucial by traders looking for bargains during bear markets to time their investments effectively. Historically since 2015, several Bitcoin bear markets have reached lows near this average; thus traders are closely monitoring it now as it currently sits around the $58,000 mark.
Péquignot concluded by stating that “traders will likely view the range between $58k and $60k as ultimate support.”