Bitcoin locked in a battle around the 200-week EMA… “Support reliability is weakening”

Bitcoin (BTC) is continuing to tussle around a key long-term support zone near $68,000, amid analysis suggesting that confidence in technical indicators has weakened.

According to Cointelegraph on the 22nd (local time), Bitcoin has been oscillating around $68,000 following a weekend sell-off, continuing to test the 200-week exponential moving average (EMA, around $68,300).

During the decline, the derivatives market saw large-scale liquidations. Over the past 24 hours, roughly $300 million in long positions and about $100 million in short positions were liquidated, amplifying volatility.

Market participants note that while the 200-week EMA served as a major support level in past cycles, it has recently failed to provide clear support. Some analysts said the indicator may no longer be a reliable baseline.

Trader Rekt Capital said, “If price fails to reclaim the 200-week EMA as support from above, the door remains open to further downside.” He added that Bitcoin could trade sideways without clearly flipping the level into support or resistance, ultimately leading to additional declines.

Other market participants are also maintaining a cautious outlook. Some traders said the drawdown from the peak has yet to run its course, citing the possibility of a further correction toward $50,000.

Still, there was also a positive near-term signal. On the 21st, a so-called “golden cross” formed as the 21-day moving average crossed above the 50-day moving average, fueling expectations for a short-term rebound.