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Deribit executive states that Bitcoin’s prolonged uptrend is ‘disrupted’ until it recovers to $85,000.
A decline in bitcoin price to $58,000 may spark renewed buying interest.
Deribit’s Jean-David Péquignot on stage at Consensus Hong Kong (Isaac Lawrence/Consensus Deribit’s Jean-David Péquignot on stage at Consensus Hong Kong (Isaac Lawrence/Consensus modified by CoinDesk))
Key points:
- Jean-David Péquignot, chief commercial officer of derivatives exchange Deribit, stated that bitcoin’s long-term upward trend is considered “broken” and will continue to be so until it exceeds $85,000.
- Péquignot noted that if bitcoin closes below the crucial $60,000 support level, the next probable target would be its 200-week simple moving average, situated close to $58,000.
- Over the past week, the cryptocurrency has been fluctuating between $60,000 and $70,000.
Bitcoin’s upward trend is regarded as “broken” and will persist until it rises above $85,000, according to Jean-David Péquignot, chief commercial officer of derivatives exchange Deribit.
The leading cryptocurrency has established itself within the $60,000 to $70,000 bracket over the last week, approximately 45% lower than its peak recorded in October. It is poised to decline for a fourth consecutive week, having fallen below $85,000 by the end of January.
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"Until the market recaptures $85k, the longer-term chart remains broken, and the path of least resistance technically remains lower," Péquignot stated during an interview at the Consensus Hong Kong conference.
Surpassing $85,000 would indicate that buyers have regained control, absorbing all the supply that disrupted the long-term perspective. The bitcoin price was recently around $66,600, significantly below Péquignot’s critical level, and firmly within bear territory with potential for further declines.
Regarding the potential for further declines, $60,000 represents the next significant support, a level that nearly came into play earlier this month as bitcoin weakened alongside technology stocks. Péquignot emphasized that this is a crucial psychological level, where substantial buy walls, or multiple purchase orders, have historically been present.
"If $60k fails to hold on a closing basis, the 200-week MA is the next logical, and potentially final destination for this correction," he remarked.
The 200-week simple moving average (SMA) is widely recognized as a critical indicator for bottom fishers, or traders seeking bargains during bear-market lows to time their bullish investments. Since 2015, several bitcoin bear markets have reached lows near this average, which is why traders currently monitor it closely. The average is presently around $58,000.
"Traders would view the $58k–$60k range as the ultimate support," Péquignot indicated.
