Bitcoin (BTC) Approaching Level That Historically Acts As Cycle Bottom, Says Top Analyst
A well-liked crypto analyst says Bitcoin (BTC) might have to maneuver additional under an vital shifting common (MA) earlier than hitting its cycle backside.
Pseudonymous dealer Rekt Capital tells his 316,000 Twitter followers Bitcoin crossed its 200-week shifting common for the primary time since March 2020.
Explaining the historic patterns BTC follows after crossing this common, the analyst says,
“BTC tends to draw back wick under this 200-week MA
The truth is, in March 2020 BTC truly Weekly Candle Closed under the 200-week MA for the primary time ever to carry out a faux breakdown”
Explains the dealer,
“BTC tends to draw back wick -14% to -28% under the 200-week MA. To this point, BTC has depraved -7% under the MA.
BTC might must wick even deeper to encourage the emotions of maximum concern, uncertainty and most pessimism which are essential to forming a bear market backside.”
Rekt Capital additionally notes Bitcoin’s Relative Power Index (RSI) is approaching ranges final seen on the bottoms of the 2015 and 2018 bear markets.
An asset’s RSI is a momentum indicator measuring latest costs to find out whether or not it’s oversold or overbought in a selected timeframe.
Bitcoin is buying and selling for $22,587 at time of writing. The highest-ranked crypto asset by market cap is up greater than 2% previously 24 hours however stays down greater than 25% on the week.
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