Bitcoin (BTC) has taken a hiatus since July. A slight correction for the bears, the beginning of a bullish wave for the bulls. The weekly moving average (MA) of 200, on the other hand, indicates that the price of bitcoin will experience a running of the bull for the months to come.
Bitcoin (BTC) bounces off the key support zone
After a long depression, bitcoin is reaching a key support level: its 2017 high, around $ 19,000. For most long-term investors, this was the ideal value to add BTC to their portfolio. They are thus taking advantage of an uptrend in bitcoin. For the less optimistic, the price will drop further to $ 13,000, the 2019 high.
From a technical point of view, there is a lack of confirmation to deduce the very strong reversal of the downward trend. So, let’s rather bet that the price rebound around $ 17,000 is just a slight correction. Let’s see what the long-term investor favorite indicator tells us: the weekly 200 MM.
Bitcoin (BTC): beginning of the bullish phase according to the 200 moving average?
Based on historical data, the price of bitcoin tends to recover when it hits the moving average of 200. With this, we can say that the DIP is reached, and the value of this cryptocurrency will not fall below $ 19,000. Looking closer, the price breaks through the 200 moving average ($ 22,330) in June and touches the support zone around $ 19,000. Thereafter, bitcoin recovers and breaks through the 200-MA ($ 22,821) in July. This type of scenario usually precedes the reversal of a downtrend. For this we can say that an uptrend is imminent for the mother of cryptocurrencies.
Do these different signs point to the start of a long-term bullish trend? It’s possible. According to this indicator (MM200), bitcoin could start to rise for the next few months. However, if you are investing now, consider liquidating your position in October. In fact, this period marks the return of the major institutional investors to the market after the summer holidays. Therefore, the cryptocurrency market could experience high volatility earlier this month.
Receive a summary of the news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so as not to miss any of the indispensable Cointribunes!
The editorial staff of Cointribune
SEO Web Editor for 3 years, I specialize in cryptocurrencies, blockchain, trading and NFT.