What to expect from Bitcoin?
Bitcoin (BTC) managed to climb above $20,000. The 200-MA, which is the key level for bullishness, needs to be surpassed.
After Bitcoin (BTC) slumped below the critical $20,000 level, the market focused on the cryptocurrency's next price action. The general market consensus thinks that if Bitcoin fails to find support at the $20,000 level, it could lead to more market crashes towards $15,000. On the other hand, Bitcoin's recovery above $20,000 could start a new rally. In the last 24 hours, Bitcoin is up about 6% to trade at around $20,600. Despite the gains, there are concerns that the asset is not ready to rise yet. The most recent BTC price drop caused the asset to form a weekly candle that closed below the 200-week moving average (MA). The last time Bitcoin reached this level was in March 2020, when both the crypto and equity markets reacted to the economic impact of the pandemic.
Will Bitcoin break above the 200-week MA?
According to the analyst, Bitcoin needs to retrace the 200-week moving average, which will act as support for a long bullish run.
“BTC must retrace the 200-week MA as support to sustain the upside from $17,500. Otherwise, Bitcoin will form the Accumulation Range bottoming below the 200-week MA for the first time ever.”
This level has historically been a strong support level. For example, the lows formed in the previous bear markets occurred in the 200-MA region. For example, in 2020, BTC bottomed out with a 28% drop from the 200-MA level. Currently, Bitcoin is trading 21% below the 200-MA. Bitcoin's next course of action will be determined by how the asset performs around the 200-MA. Lower price action seems possible. However, the data shows that Bitcoin may not fall very much over a long period of time. Bitcoin has a historical trend of falling below the 200-MA for a short time, then increasing to the upside.
This bullish thesis contradicts market experts' predictions that Bitcoin will continue to fall. According to economist Peter Schiff, widespread cryptocurrency market selling will continue until Bitcoin reaches zero. He states that the market is a belated bubble. Apart from technical analysis, other factors such as the state of the economy will determine Bitcoin's next move. The Federal Reserve is trying to curb high inflation by announcing a rate hike as it battles recession fears. In fact, after 2 days, he also mentioned 20k as a possible bottom for Bitcoin.
According to the Glassnode, starting from the 17th of June both green and blue lines on Binary Liveliness increase. The last time he started to decrease was on the 7th of June Bitcoin was 31k$.
This OnChain data supports the idea of possible increases in the next few days.
The authors of the articles on this site cannot be held responsible for your investment decisions. In addition, every investment and trade movement involves risk. That's why you should do your own research when making a decision.