Bitcoin price continues to decline, falling below the $64,000 support level earlier this week. The move further solidified the decline and signaled the possibility of more selling as investors move to avoid further losses. Amid the chaos, major historical trends are at risk of being broken. This ties into the monthly highs of the previous cycle, which saw Bitcoin fall to levels that are now dangerously close.
Bitcoin threatens to break its previous monthly high cycle.
Cryptocurrency analyst Mr. Anderson pointed out: analyze Bitcoin is now dangerously close to breaking its previous monthly high, according to a post on X. What is interesting about this development is that in each cycle, Bitcoin price has never closed a monthly candle lower than the previous monthly cycle high. What this means is that if it happens, it will be the first new trend in digital assets in history.
The price of Bitcoin is at around $65,000, just $4,000 off the previous monthly high of $61,359. With the Bitcoin price still in a downward trend and only a few days left until the end of February, the chances of breaking previous cycle highs are even higher.
In the post, the analyst shared performance from previous cycles, showing that there has been no disruption in monthly top cycle closings. Rather, this level has previously served as key support and often helps mark a bottom before the next rally begins. “If we close below that, it will be the first confirmed monthly cycle-level top-level analysis in history,” Mr. Anderson explained.
There is a first time for everything
In response to Mr. Anderson’s post, Crypto Feras, another cryptocurrency analyst, explained that there is always a first time for everything, explaining that disruptions can happen. One example given is the fact that Bitcoin price has never actually fallen below the weekly MA200. However, this was broken in the last cycle and ushered in a new era. Crypto Feras added, “Now that the monthly is a higher TF, it may take longer to break the rule, which is 1 cycle added to the weekly MA200 rule violation.”
Mr. Anderson, who acknowledged the possibility, said Bitcoin actually fell below the weekly 200-EMA and 200-SMA before breaking the weekly 200-MA. However, we have yet to hear of a new monthly high from last cycle, and it would be a notable development if that were to happen.
Featured image by Dall.E, chart by TradingView.com
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