On Thursday, Bitcoin continued its downward trend, and the 55-week moving average support level was once again tested. According to data, Bitcoin fell 2.7% during the Asian session on Thursday. As of press time, Bitcoin fell 1.70% during the day to US$4,6898.7 per coin. This month, the cryptocurrency market is in a downward trend, with Bitcoin’s cumulative decline of 18%.

In the past two years, Bitcoin has been supported at the 55-week moving average technical level. Both the December flash crash and the mid-year cryptocurrency plunge failed to make the cryptocurrency fall below this position. However, technical indicators show that if this key support level is not maintained, Bitcoin will drop to $40,000.

Bitcoin’s trend has always been turbulent, and in the upcoming 2022, people may worry that as the stimulus measures subsided during the epidemic period, Bitcoin (S19XP 140t) may eventually oscillate and fall, rather than return to the upward trend.

However, the beliefs of cryptocurrency supporters have not wavered, and they have found trends such as increasing interest from financial institutions.

XTB Market analyst Walid Koudmani wrote in an email that this year, “due to the influx of institutional investment, the recognition of cryptocurrencies and blockchains has increased significantly, which has renewed confidence in the industry.”