Bitcoin's Critical Support Level: Analyst Warns of Potential Price Decline

A recent analysis by cryptocurrency expert Rekt Capital has highlighted potential risks for Bitcoin's price if it fails to maintain support at the 200-week exponential moving average (EMA) level.

The EMA is a key technical indicator used to identify trends and predict price movements. According to Rekt Capital, a weekly close below this level followed by a post-breakdown retest of the EMA into new resistance has historically triggered bearish acceleration in previous market cycles.

BTC's current price action shows that it trades around $68,400, just above the 200-week EMA. However, the analyst noted that multiple weekly closes above this level do not necessarily confirm a bullish trend and that a breakdown could still occur.

Rekt Capital emphasized that a convincing breakout above the 200-week EMA resistance level would be necessary to invalidate the likelihood of a price collapse. If Bitcoin were to lose support at this level, it may experience a significant price decline similar to events in 2018 and 2022.