"2022 Nightmare Repeats"... Danger Signals Emerge on Bitcoin Chart

▲ Bitcoin Plunge / ChatGPT Generated Image ©

Market tension is rising amidst warnings that Bitcoin (BTC) could plummet to $50,000 if it fails to break through the $84,000 resistance level.

According to investment media FXStreet on May 6 (local time), crypto investment firm TradingShot analyzed that Bitcoin is about to test its 200-day moving average (1D MA200), the most critical resistance zone in the current bear market phase. The media particularly viewed the recovery to $84,000 as a key turning point that will determine the future mid-to-long-term trend.

TradingShot diagnosed that the current Bitcoin price movement is similar to the 2022 bear market pattern. At that time, BTC broke below the 200-day simple moving average (SMA), then confirmed that zone as a resistance level again during a rebound, followed by further sharp declines, recording new lows. If a similar structure repeats this time, a 'Stepping Stones' type of downward pattern could be completed, opening up the possibility of a correction to $50,000.

The media emphasized that while BTC is currently testing the $82,000 vicinity, the real key is whether it can recover $84,000. Failure to break through this zone could confirm a signal of an extended bear market. Conversely, it added that if the resistance is successfully broken, the current bearish scenario could be invalidated.

The market is also paying attention to whether the lower support line can be defended. Trading account Cryptic Trades assessed that the 'Bull Market Support Band', consisting of the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA), remains a key support zone. This zone is currently formed around $78,000.

Experts assessed that the long-term market structure itself has not yet been damaged as long as Bitcoin maintains the April 2025 low structure in the $76,000 range. However, they warned that if it fails to break through the higher timeframe resistance around $84,000, short-term selling pressure could increase again.

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