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Last week did not bring any good for the top cryptocurrency bitcoin (BTC). The cryptocurrency saw a drop of almost 12% after losing a vital bear market trendline. However, there is still some good stuff left for bitcoin enthusiasts within the asset. Recently a Twitter user noted the possibilities of repeating long-term moving average’s classic bullish behavior.
The trading pair of Bitcoin with US dollar witnessed decline and it went to the lows since July end. For some time, the BTC trading price has been hovering around 21K USD and it has been cited as support for a while. But considering it a weak support, there are uncertainties around the space regarding the possibilities of new lows.
Evidently amongst the effects due to the recent downturn, one remains the 200-week moving average. The numbers are at a level which turned its role to support from being resistant about a month ago. Given the current situation, the 200-week moving average currently acts as a shortcoming in terms of bitcoin’s strength.
While noting the reasons behind failing of 200-week MA as support, an investment firm analyst stated during a couple of last weeks the possibility of bitcoin witnessing a price rally towards 25K USD unmatched given the widespread environment of FOMO. Although when the focus shifts and perception zooms into shorter periods of moving averages like 50-week and 100-week, the story turns somewhat different.
Aforementioned Twitter user name Dave, indicated in his thread of tweets that the moving averages are going to cross. He cited the instance of sustained price growth in the past. In a comment replying to a question, he wrote that the 1 year moving average of bitcoin is crossing its 2 year moving average. This is taking place as an outcome of a corrective phase followed by a speculative run-up.
Sentiment doesn’t act while looking towards the situation from a technical perspective. The people who are buying at these levels are clearly those who also bought it earlier, he added. Further he also noted correctly assessing the incoming market downtrend five months ago, after which bitcoin touched its recent lowest of 17,600 USD.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
