With Bitcoin\u2019s price having broken below a support level of some importance, traders are left to wonder if a major bearish trend is in the offing. A case for further downside can be made from the market\u2019s recent behavior and attendant risks, as the latest analysis on the CryptoJack channel suggests.<\/p>\n
In the last day alone, the crypto market has seen $1.13 billion in liquidations. The guest trader on CryptoJack points to this as a sharp move that has accompanied Bitcoin slipping under a key support, which was once a resistance point. It is a breakdown that many would read as a bearish signal, an indication that any prior optimism is giving way to negative sentiment.<\/p>\n
The trader was at pains to stress that with this support gone, Bitcoin could be embarking on a sizeable bearish trend. To put it in perspective for the uninitiated: support is where one would expect buyers to make their stand; when it is ceded to the sellers, more losses tend to follow.<\/p>\n
Looking ahead, the next technical risk is Bitcoin making its way to the 50-week moving average, a long-term trend indicator that is followed by most traders. \u201cVery dangerous\u201d for the market is how the trader on CryptoJack described the situation should the price test that level. A drop of consequence below the 50-week moving average may well usher in a more overt bear market, leaving short sellers with the advantage.<\/p>\n
The trader has put his money where his mouth is with a short position on Bitcoin, entering at $87,000 and already up $17,000. Should the bears keep up their momentum, $77,000 is the figure they have in mind for the next target.<\/p>\n
For their trading, the guest favors Calci, a U.S.-friendly platform with perpetual contracts and prediction markets that offers the kind of flexibility and range of tools one wants in volatile conditions.<\/p>\n
All of which is to say the warnings and price action we have been seeing on CryptoJack are a reminder of what good risk management entails. For the novice, technical breakdowns and big swings in price are as much an opportunity as a risk, but they call for a cautious approach. As the trader makes clear, a fall under the 50-week moving average would be a telling change in the market\u2019s direction; it is an indicator beginners would do well to heed before putting on a trade.<\/p>\n
This article reflects the channel author\u2019s opinion and is not investment advice.<\/em><\/p>\n Every call by CryptoJack and how it played out \u2014 in the BuyCrypt bloggers tracker<\/a>.<\/em><\/p>\n Source \u2014 CryptoJack: https:\/\/www.youtube.com\/watch?v=o0rRQKXM1kI<\/a><\/em><\/p>\n <\/p>\n Stay ahead of market dips by honing your skills with our risk-free crypto trading simulator. practice risk-free trading<\/a>.<\/p>\n <\/p>\n