Bitcoin’s rally may reverse as its price has hit a historic resistance level and traders appear to already be taking profits, said CryptoQuant in a note on Wednesday.
Bitcoin is at risk of falling into a downtrend after its price hit a key historical “major bear market resistance level” based on its 200-day moving average, according to the crypto analytics firm CryptoQuant.
The cryptocurrency hit its 200-day moving average of $82,400 after rallying over six weeks since early April when it fell to $66,000, CryptoQuant said in a report on Wednesday.
“The 200-day MA [moving average] was a major resistance in the 2022 bear market: the price resumed its downward trend after hitting it in March of that year,” it said. “The current setup raises the question of whether history repeats.”
