Bitcoin critics say BTC price is going to $0 this time, but these 3 signals suggest otherwise

0
79
Reklama

Like the clock ticking, the rise of the crypto bear market led to a “bitcoin dead” crowd that gleefully declared the end of the largest cryptocurrency by market cap.

The past few months have been really painful for investors, with Bitcoin (BTC) dropping to a new low in 2022 at $17,600, but recent calls for the asset’s expiration are likely to suffer the same fate as the previous 452 forecasts of its death.

Bitcoin obituary number. Source: 99 Bitcoins
Stable Bitcoin has a bag full of tricks and on-chain metrics that they use to determine when BTC is in buy territory, and now it’s time to take a closer look. Let’s see what time-tested metrics have to say about Bitcoin’s current price action and whether the 2021 bull market is Bitcoin’s last concern.

Some traders always buy a bounce from the 200-week moving average
One metric that has historically acted as a strong level of support for Bitcoin is the 200-week moving average (MA), as shown in the following chart published by market analyst Rekt Capital.

BTC/USD against the 200-week moving average weekly chart. Source: Twitter
As indicated in the area highlighted by the green circles, declines originated in previous bear markets occurred in areas near the 200-MA, which effectively performed as a major support level.

Most of the time, BTC price has tended to briefly deviate from this scale and then slowly return above the 200-MA to start a new bullish trend.

Currently, BTC price is trading at the 200-week moving average after briefly dropping below the scale during the sell-off on June 14. While a move down is possible, history suggests that the price will not fall much below this level for an extended period.

Reklama

LEAVE A REPLY

Please enter your comment!
Please enter your name here