The 200 week moving average although somewhat arbitrary has been a critical support for bitcoin as far back as 2015, acting as a sort of launch pad for the bull run to $20,000. The lowest weve been below the moving average is 30% back in January 2015 and more recently March of this year, both times the price quickly jumped back up above it because historically traders think anything below the 200 week ma is a bargain.
From my chart you can see that we have touched the 200 week ma 3 times already this past year and bit... It is fundamental trading knowledge to know that the more times support is touched the more chance there is of it breaking. I am of the opinion that because bitcoins volatility is slowing down and the fact that we have touched the 200 week ma multiple times, this historical support will broken on the 4th or 5th touch in the coming months and not just broken but we will stay under it for months as bitcoin capitulates to $3000s and potentially lower. Thanks for reading.
The 200 week moving average is currently $5650.
From my chart you can see that we have touched the 200 week ma 3 times already this past year and bit... It is fundamental trading knowledge to know that the more times support is touched the more chance there is of it breaking. I am of the opinion that because bitcoins volatility is slowing down and the fact that we have touched the 200 week ma multiple times, this historical support will broken on the 4th or 5th touch in the coming months and not just broken but we will stay under it for months as bitcoin capitulates to $3000s and potentially lower. Thanks for reading.
The 200 week moving average is currently $5650.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.