A senior executive at cryptocurrency derivatives exchange Deribit says that Bitcoin's (BTC) long-term rally is “broken” and will remain so until the price rises back above $85,000 U.S.
Jean-David Péquignot, chief commercial officer at Deribit, made the comments as Bitcoin’s price slumped to $66,000 U.S.
The largest cryptocurrency by market capitalization is 45% below the record high of $126,000 U.S. that it reached last October. BTC fell below $85,000 U.S. in January of this year.
“Until the market reclaims $85K, the longer-term chart remains broken, and the path of least resistance technically remains lower," said Péquignot at the Consensus Hong Kong conference.
Péquignot's added that $85,000 U.S. is a “make-or-break level” for Bitcoin and would confirm that buyers have re-established control.
For now, $60,000 U.S. looks to be the next big support level for Bitcoin as digital assets fall alongside software and other technology stocks.
Péquignot said $60,000 U.S. is a “major psychological level” for Bitcoin and failure to hold that level could see the price drop substantially lower.
“If $60K fails to hold on a closing basis, the 200-week moving average is the next logical, and possibly final stop for this correction,” he said.
Bitcoin’s 200-week moving average is currently at $58,000 U.S. and could signal capitulation among traders and investors, said Péquignot.
