Bitcoin Falls Below 200-Day Moving Average, Bull Cycle in Question

As of July 4, 2024, the price of Bitcoin fell below its 200-day moving average (DMA), which currently sits at $58,373. This is the first time since August 2023 that Bitcoin has fallen below this key technical indicator. Since the beginning of 2024, Bitcoin's price has risen, peaking at over $70,000 in March. However, the recent price drop below the 200 DMA suggests that the market may be entering a corrective phase. According to Glassnode, historically Bitcoin's interaction with the 200 DMA has been a reliable indicator of bullish or bearish trends. Typically, a price break above the 200 DMA signals a significant uptrend, while a break below signals a long-term bear phase. The current price action needs to be treated with caution and could mark the end of the recent bullish cycle. This development suggests that the Bitcoin market is in the midst of a post halving correction and investors need to keep a close eye on the future price direction.