Bitcoin faces significant price decline risk if support level breaks

A cryptocurrency analyst has warned that Bitcoin may experience a significant price decline if it fails to maintain a critical technical support level.

The 200-week exponential moving average (EMA) is considered a key cycle support line for the digital asset, and the analyst suggests that losing this support could lead to a sharp selloff. In previous market cycles, a weekly close below the 200-week EMA followed by a post-breakdown retest led to bearish acceleration.

The analyst notes that Bitcoin has posted weekly closes above the 200-week EMA for two consecutive weeks, preventing near-term bearish confirmation. However, the analyst cautions that without sustained upward momentum, the digital asset remains vulnerable.