Cryptocurrency analyst Colin Talks Crypto said that the market has reached a critical threshold following the recent drop in the Bitcoin price. According to the analyst, although BTC is still in the bull market, the momentum is weakening and maintaining current levels is of great importance. Colin, in a chart shared on Twitter, assessed the recent support zones separating bull and bear markets. The analyst stated, “The chart is showing us some signs of weakening. It's not over yet; we're still in a bull market, but momentum is waning, and BTC needs to hold these levels, around $98,000.” According to the graphic in the post: Red line: 50-week simple moving average (SMA), Blue line: trend line extended from 2021 peaks, Gray line: June 2021 bottom level, Yellow lines: Represent the Megaphone channel. Chart shared by Colin Talks Crypto. Related News: Could Bitcoin Experience an 80% Drop Like the Old Bear Markets? Chinese Analyst Explains by Looking at Whales Colin described the area where these supports converge as “a crossover point around $98,000,” noting that weekly closes below this level could pose a threat to the cycle. “In this case,” he said, “the likelihood of the cycle having peaked increases. Two weekly closes below the 50-week SMA, in particular, have historically provided a reliable signal confirming a bear market,” he said. Still, Colin Talks Crypto does not rule out the possibility of a new all-time high (ATH) by the end of the year: “Personally, I still think we could see a new ATH this year. However, as it stands, there is significant damage to the chart and that damage needs to be recouped.” The analyst also noted that Bitcoin has only retreated 17.8% from its ATH level, reminding that this is a normal level of volatility relative to past cycles: “Declines of 20-30% are normal, especially during peak periods. From this perspective, the 17.8% pullback is not an exaggeration.” Colin Talks Crypto recently urged investors to remain cautious, saying, “There is hope, but we need to pay attention to what happens at these key levels. In the best-case scenario, Bitcoin could bottom out before reaching these levels.” *This is not investment advice. Continue Reading: Renowned Analyst Reveals the Most Important Level to Protect Against the Bull Run Ending in Bitcoin
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