Experts Identify Critical Bitcoin Price Support Levels Amid Ongoing Downtrend

Some on-chain researchers and technical analysts believe that the potential for a further decline in the price of the first cryptocurrency is far from exhausted.

Ted Pillows and several other experts highlight the importance of the 50-week exponential moving average (50 EMA) as a significant support level, which currently serves as a threshold between bull and bear markets, hovering near the $77,500 mark.

The specialist is confident that if the price dips below this critical level, it could trigger a continued drop towards the $69,000–$70,000 range, aligning with the cyclical peaks observed in 2021.

The notion of a high likelihood of continued correction is further bolstered by the technical analysis pattern known as the «Bear Flag,» which has a target of $71,300.

On-chain experts from Glassnode emphasize the significance of the $74,000 level, where a substantial «cost basis cluster» of over 50,000 BTC is located.

In total, investors are holding around 175,000 BTC within the $70,000–$74,000 range, establishing a robust support zone.

Another sizeable cluster can be found at the $71,600 level, containing approximately 41,000 BTC, which makes it a likely next support point should the price break through the $74,000 mark.

According to Glassnode, the average purchase price for short-term holders (STH) stands at $89,000.

The following support level, considering standard deviation, is $69,000. Historically, this has served as a «maximum pain zone» for STH. It now acts as a kind of «floor,» where «weak hands» capitulate, making room for HODLers.

Patterns from past years also indicate that after a decisive breach of the 50 EMA support, Bitcoin has entered prolonged bear markets. Such corrections frequently pushed the price towards the 200-week moving average, as illustrated in the red circled areas below.

At the time of writing, the 200 EMA is situated near the $50,000 mark, indicating yet another potential support level.

As a reminder, senior strategist at Bloomberg Intelligence, Mike McGlone, has suggested the possibility of Bitcoin falling to $10,000 amid turbulence in traditional finance.