Bitcoin’s long-term price momentum is breaking, Wolfe Research says

Published Thu, Sep 14 202311:38 AM EDTUpdated Thu, Sep 14 20231:14 PM EDT

Bitcoin's price this week is near a familiar and key support level, but its latest stop there is a little more worrying than previous ones this year, according to Wolfe Research. Earlier this week, bitcoin fell below $25,000 for the first time since March . The flagship cryptocurrency tested this threshold at various points this year, but it always rebounded. While bitcoin has been floating in the narrow range of $25,000 to $30,000 all year, investors have cheered its resilience knowing potential catalysts such as developments around bitcoin exchange-traded funds were on the horizon. That long-term momentum is starting to break, however. That means crypto investors who have been patiently waiting for better days may want to consider their positions. "With support in this area on dual fronts, it makes sense that price would hold and consolidate in this region. However, as we look around, the crypto landscape is growing ever more concerning," Wolfe analyst Rob Ginsberg said in a note Wednesday. "Coins are taking out crucial levels of support across the board and there's not many bright spots to be found at the moment." "Longer term momentum is starting to break in bitcoin," he added. "This is often one of our more reliable warning signs and part of the reason we are currently bearish on the broader market. Short term price action is never our worry, it's when longer term trends start to break, that we want to take notice and pivot accordingly." BTC.CM= 6M mountain Bitcoin recently fell below key support at $25,000 for the first time since March. Bitcoin's 50-day moving average began turning lower in August and recently crossed below its 200-day moving average. Although it may be losing momentum, the 200-day moving average is still ascending. The next level of support below $25,000 is at $20,000, Ginsberg said. Further, ether is testing the $1,600 threshold, which has Wolfe "highly concerned." Failure to bounce from that level puts $1,500 at the next level to test on the downside, the firm said. "As the retail investor comes under pressure and liquidity is drained, our concerns will only grow for crypto prices," Ginsberg added. — CNBC's Michael Bloom and Nick Wells contributed reporting.