As part of its current mid-term downtrend, Bitcoin (BTC) could be headed toward its 200-calendar week moving average (MA), a level that has been a major historical lesser.

Since hitting its 2022 high of approximately $13,890, Bitcoin has seen lower highs indicative of a downward trend, at least in the mid-term.

After a corrective bounce upwardly to $7,875 last week, Bitcoin was unable to shake its larger downtrend, heading back downwardly to $7,285 past press time. The asset could ultimately have its sights set nearly $five,000 before a mid-term trend reversal equally its charts look generally bearish at present.

Crypto market place daily performance. Source: Coin360

Bitcoin weekly nautical chart

BTC USD weekly nautical chart. Source: TradingView

Bitcoin's weekly chart painted a wick that tested back up virtually $vi,550 concluding week, hitting just beneath a downside wick from May 2022. Below $6,550, the coin lacks weekly support and notable price activity until $5,760.

Back in April, Bitcoin'southward price tallied significant price action between $5,760 and $4,890, indicating a zone of future support. This surface area of support also coincides with the digital asset's 200-week moving average near $4,990.

The 200-week MA has been a major level of support in Bitcoin'southward history, serving equally the lesser of the asset's final major carry market in 2022 and early 2022.

Since 2022, Bitcoin has bounced off its 200-week MA several times, never decisively closing below information technology and belongings it as trend resistance, according to Dauntless New Coin'southward Bitcoin Liquid Index (BLX) nautical chart information.

Bitcoin daily chart

BTC USD daily nautical chart. Source: TradingView

Bitcoin's daily chart shows a fair scrap of bearishness. Concluding week's move up past $seven,800 looks to be a bullish correction amid an overall bearish trend. Unless BTC posts a decisive higher swing loftier past $vii,880, the cost may await to suspension down further, below $6,500.

If the range low most $vi,540 is broken with strength, the lack of support mentioned on the weekly fourth dimension frame could pb the asset downwards below $6,000. Additionally, Bitcoin'south daily Ichimoku Deject is cherry-red, indicating a bearish time to come while the Tenkan (blueish line) is below the Kijun (red line), which is also surly.

The asset is as well quite far below its 200-twenty-four hours MA near $nine,415, which is often seen as a benchmark for bullish or bearish market positioning. On a positive note, however, Bitcoin's December. 2 candle has held on the Tenkan as support, which could fuel a test of the Kijun above.

Bitcoin 4-hour chart

BTC USD iv-60 minutes chart. Source: TradingView

On a shorter time frame, several candles agone, Bitcoin bounced off its cloud bottom equally support before testing its cloud top as subsequent resistance. The asset's price is currently consolidating in the middle of the cloud, although the deject is dark-green ahead indicating possible bullishness to come, at least in the brusk term.

The toll recently faced rejection from the Tenkan, and the Kinjun also holds to a higher place as potential future resistance.

Bearish scenario

Crypto'south elevation nugget seems to accept the cards stacked against information technology for the well-nigh part in terms of trend, at to the lowest degree for the time being. The absence of significant weekly price action to a higher place $6,000 means a potential lack of support if the selling continues.

The $6,000 to $7,000 resistance zone as well melted quite easily earlier in 2022 during Bitcoin'south parabolic move up, so there is always a hazard the zone might not concord as support if Bitcoin falls further than its contempo swing depression near $half dozen,500.

A move down to the 200-calendar week MA would make sense for Bitcoin at this point, peculiarly since each sizeable swing high has been successively lower since June 2022, unable to break market structure to the upside.

Additionally, supposed continued selling of BTC funds from the declared PlusToken scam might drive prices lower, thwarting whatever bullish sentiment that may build.

Bullish scenario

On the bullish side, Bitcoin had a fairly decisive bounce near $half-dozen,500. If the asset can suspension above its current iv-hour Ichimoku Deject and hold information technology equally support, Bitcoin may be able to build some steam for further momentum upward.

Posting a decisive swing high by $vii,900 would indicate a interruption in the downtrend, at least in the short-term, which possibly might lead to a mid-term changing of the tides. From there, the asset might be able to gain some sort of momentum to push back up and test some of its resistance levels past $8,000.

Additionally, Bitcoin has the power to randomly change all current sentiment and bias, every bit seen by its celebrated 24-hour pump of 42% in Oct, although such a move did not ultimately change Bitcoin'southward mid-term tendency.

Bitcoin has also proven itself equally volatile for the month of Dec, with many years yielding positive toll action. Such volatility could assist BTC detect its ultimate bottom and reversal, or simply assist the nugget motility upwards decisively from its present location.

The views and opinions expressed here are solely those of (@benjaminpirus) and do not necessarily reflect the views of Cointelegraph. Every investment and trading motility involves risk. Yous should bear your own research when making a decision.