In the past week, bitcoin (BTC) missed a key bear market trend line by giving up nearly 12%, but other chart data offers a silver lining for bulls.
What he pointed popular Twitter user Dave the wave on August 24, the long-term moving averages (MA) are about to repeat the classic bullish behavior.
Analyst: Bulls could be about to ‘get it right’
The BTC/USD pair disappointed over the weekend hitting lows not seen since late July. Since then, $21,000 has only offered weak support.and fears of new lows abound.
One of the victims of the crash was the 200-week MAaccording to data from Cointelegraph Markets Pro and TradingView, a level that had moved from resistance to support the previous month.
Now above again and unchallenged by this week’s bounces, 200-Week MA Delivers Verdict on Bitcoin’s Current Lack of Strength.
“The amount of FOMO we saw in CT in the last 2 weeks during the $25,000 rally is unprecedented. This bull trap almost has to work,” summarized analyst Venturefounder after the 200-week MA failed as support.
Nevertheless, Observing the behavior of the MA of 50 and 100 weeks, one can think that all is not lost.
In his Twitter thread, Dave the wave showed that the former is about to cross over the latter, and in the past, this has been followed by sustained price growth.
“Bitcoin’s 1yr moving average is crossing the 2yr moving average based on the corrective phase after a speculative rally,” he wrote in the comments accompanying the article..
“It looks good from a technical perspective…regardless of sentiment. Those who buy at these levels have done well before.”
He added that five months earlier, the same MA pair had correctly assessed the incoming market downtrend that saw BTC/USD hit a macro bottom of $17,600 in June.
Following the bottom of the Pi cycle
As Cointelegraph reported, there are more than one moving average based chart mechanism showing a bottom signal this summer.
The classic indicator Pi Cycle Top, which has captured macro funds throughout bitcoin’s history, was already turning green in July, lending weight to the idea that June’s $17,600 was actually a multi-year low..
Nevertheless, In a Pi update this week, commentator Miles Johal acknowledged that bulls needed to break through higher levels to maintain the favorable status quo..
Big expansion on the pi cycle top MA’s.
Getting back above the orange line is crucial for the bulls.$BTC pic.twitter.com/REiSHrLSqG
— Miles J Creative (@JohalMiles) August 23, 2022
Large expansion in the MA of the top of the Pi cycle. Breaking back above the orange line is crucial for the bulls. #Btc pic.twitter.com/REiSHrLSqG
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