Cryptocurrency expert Colin Talks Crypto has highlighted a pivotal moment in the market following Bitcoin’s recent price decline.
The analyst suggests that while Bitcoin remains within a bullish phase, its upward momentum is showing signs of weakening, making it crucial to sustain its current position.
In a chart shared on Twitter, Colin evaluated the support zones that differentiate bull markets from bear markets. He remarked, “The chart indicates some weakening signals. Although we’re still in a bullish trend, the momentum is diminishing. It’s vital for BTC to maintain levels around $98,000.”
The chart includes:
Red line: 50-week simple moving average (SMA),
Blue line: Trend line extending from 2021 highs,
Gray line: June 2021 low point,
Yellow lines: Representing the Megaphone channel.
Chart shared by Colin Talks Crypto.
Colin pointed out that where these supports intersect is “a crossover point near $98,000,” warning that weekly closures below this threshold could jeopardize the cycle. He explained: “If this occurs, it increases the chance of having reached cycle peaks. Historically, two consecutive weekly closes under the 50-week SMA have reliably signaled an incoming bear market.”
Despite this cautionary note, Colin Talks Crypto remains optimistic about reaching new all-time highs (ATH) before year-end:
“Personally I still believe we might witness a new ATH within this year. Nonetheless,, there’s considerable damage on the chart which needs addressing.”
The analyst also observed Bitcoin’s retreat by only 1&&.8% from its ATH level and emphasized that such volatility aligns with historical cycles:
“\Declines ranging between &&.30% are typical during peak phases\”. From this angle\&comma \the &”\17&\%.8% pullback isn’t excessive.\”
Recently\&comma \Colin urged investors to exercise caution stating\, “There’s hope but monitoring these critical levels closely is essential\. Ideally\, Bitcoin could stabilize before breaching these points\.
*This content does not constitute investment advice.