Bitcoin Drops Under the Historic Trendline

Bitcoin Drops

The 50-week simple moving average or 50-week SMA wave describes the average price traders have paid for Bitcoin over the past 50 weeks. Over the years, and in 2020, its invalidation as price floor has committed to pushing the Bitcoin market into sharp bearish cycles.

For example, the 50-week SMA acted as support throughout the 2018 bear market. The wave assisted in preventing Bitcoin from experiencing deeper downtrends — within February 2018 and May 2018 — as its price changed from the then-record high of $20,000.

Furthermore, the wave rendered Bitcoin incredible support throughout its change from its $15,000 high in 2019. Additionally, it continued well as a price floor till March 2020. Back then, the presence of the coronavirus epidemic created a global market crash.

 

Fractal Targets $12,000 to $13,000

 

Anonymous chartist “Bitcoin Master” bestowed worries regarding Bitcoin’s potential to undergo an 80% average price drop against developing bearish on its 50-day SMA. The analyst notified that if the asserted fractal works out, BTC/USD exchange rates could descend to as profound as $13,000.

Meanwhile, Bloomberg Intelligence’s senior commodity strategist, Mike McGlone, also highlighted the 50-week SMA in a tweet beginning in July. The analyst suggested that investors not drop their Bitcoin holdings right away on initial falls under the wave.

Selling Bitcoin on original dips under its 50-week moving average in the past has demonstrated an excellent way to waste money, even in bear markets, McGlone described.

 

Bitcoin Market Analysts Have Mixed Thoughts

 

The most advanced Bitcoin drop came in the wake of a global risk-on market drop. It was driven by concerns that the highly transmissible Delta variant of coronavirus would slow down the economy reopening improvements.

Head of business development at cryptocurrency exchange Luno Vijay Ayyar remarked that Bitcoin could decline further. In comments to Bloomberg, the previous Google executive stated the BTC/USD exchange rates could drop to as low as $20,000. Although, he assumed the pair to retest $40,000 on the following bounce.

 

Solid Fundamentals and Bullish Signals Settle

 

Notwithstanding, another analyst recommended a different, more positive outlook on the existing position of Bitcoin.

James Wo, founder CEO of the global crypto investment firm Digital Finance Group, highlighted on-chain indicators. It included a continuous drop in exchange inflows and active wallet approaches, as a reason to stay bullish on Bitcoin.

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