Bitcoin (BTC) is now further below a key moving average than it was in the March 2020 COVID-19 dip.
In a Tweet On Jan. 4, popular trader and analyst Rekt Capital revealed just how remarkable the current Bitcoin bear market really is.
BTC price, 200-week moving average out of range
Not only has Bitcoin spent longer than ever below its 200-week moving average (WMA), but it is now further below than at any time in history.
Looking at the weekly chart of the BTC/USD pair, Rekt Capital confirmed that as of January 4, the BTC/USD pair was trading around 37% below the 200-day moving average.
This, he noted, was “Deeper than the -31% retracement in March 2020.”
The numbers provide interesting reading in a bear market that has yet to see BTC price pullbacks from all-time highs rival previous lows in percentage terms.
In March 2020, Bitcoin abruptly lost 60% in a matter of days as markets reacted to the first wave of massive Coronavirus lockdowns.
At the time, however, the largest cryptocurrency spent less than two weeks below the 200-weighted average, a stark contrast to 2022. The BTC/USD pair missed the trend line, which also featured in the 2018 bear market. , in August of last year, and since then he has not been able to recover it.
S&P 500 faces ‘March cycle low’
The situation can get even worse.
Analysts are currently betting on a first quarter that tests the resolve of bulls, even if it ultimately closes with BTC higher than today.
For trader, investor and entrepreneur Bob Loukas, the correlated markets could bottom out in the next quarter.
Analyzing the S&P 500 in weekly timeframes, Loukas described last year’s crash as unparalleled in its textbook nature.
“It’s been the cleanest stock market crash I’ve ever seen,” said to his Twitter followers.
“Currently still pointing to declines to a March cycle low.”
Bitcoin has underperformed stocks and gold since the FTX crash, Cointelegraph reported, leaving the door open for what bulls hope will be a game of “catch up.”
Late last month, David Marcus, CEO and founder of Bitcoin firm Lightspark, predicted that the “crypto winter” would last longer than 2023 and even extend beyond the next Bitcoin block subsidy halving event.
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