Bitcoin Retests 20-Week EMA: Bounce or Breakdown?
Bitcoin retests its 20-week EMA after major liquidations. Is a bounce next, or could we head for the 50-week EMA at $98K?
- Bitcoin retests key 20-week EMA support level
- 50-week EMA sits around $98K as the red line
- Bounce possible after major liquidations if equities stay stable
Bitcoin is once again testing a major technical level: the 20-week Exponential Moving Average (EMA). This line has historically acted as a critical support zone during bull cycles. Following two of the largest liquidation events of the year, many eyes are on this level to determine whether the market can recover or if more downside is ahead.
The recent drop in Bitcoin price has coincided with a broader sense of uncertainty in the market. However, some analysts suggest that these liquidations may have flushed out weak hands, potentially setting the stage for a rebound — but only if macro markets, especially equities, remain steady.
Understanding the Red Line: 50-Week EMA
While the 20-week EMA is a critical short-term level, longer-term support lies around the 50-week EMA — currently sitting near the $98,000 mark. Although this level seems far below the current price, a drop toward the 50-week EMA wouldn’t necessarily spell disaster. Instead, it could offer a more sustainable base for the next leg up.
Still, this $98K zone is considered the “red line” — a level that bulls must defend if the market turns bearish again. A break below it would raise questions about the strength of the ongoing bull run.
Liquidations Clear the Path for a Bounce
The two major liquidation events earlier this month wiped out millions in leveraged positions. Historically, such large-scale liquidations often mark local bottoms. With reduced leverage in the system and prices at key support, the market could be primed for a bounce — assuming there are no shocks from traditional markets.
Equities have become a key influence on Bitcoin’s movements. If stock markets remain stable or move higher, it could provide the confidence needed for crypto traders to re-enter.
Read Also :
- Czech Central Bank Builds $1M Digital Asset Test Portfolio
- Crypto Scammers Impersonate Police in Australia
- Michael Burry Shuts Down Scion Asset Management
- Michael Saylor: Bitcoin to Surpass Gold by 2035
- UFC Partners with Polymarket for Crypto Predictions
