Bitcoin (BTC) has fallen below an important trend line of the bear market with a minus of almost 12 percent in the past week. Other chart data, however, paint a more positive picture.
Well-known Twitter user Dave the wave wrote on August 24 that the long-term moving averages (MAs) would exhibit bullish behavior.
Analyst: Bulls may soon “do well”.
BTC/USD disappointed at the weekend with a low that has not been reached since the end of July. Since then, the $ 21,000 mark has provided only weak support. It is feared that new lows will be reached.
Among other things, the price has slipped below the 200-week MA, as data from Cointelegraph Markets Pro and TradingView show. This level could be turned from a resistance to a support in the previous month.
The price is now again below the 200-week MA and has not been reached so far. This indicates a current lack of strength in Bitcoin.
“You haven’t seen as much FOMO as we have seen in the last 2 weeks during the rally to 25,000 US dollars. This bull trap had to come almost like this, ” as the analyst Venturefounder summarized, after the 200-week MA gave way as support.
However, the behavior of the 50-week and 100-week MA suggests that all is not necessarily lost yet.
On Twitter, Dave the wave revealed that these two are about to cross paths. In the past, such a crossover was followed by a persistent rise in the price.
“Bitcoin’s 1-year moving average is now crossing the 2-year moving average. This indicates a correction phase after a speculative increase, ” he wrote in a comment.
“From a technical point of view, it looks good… Regardless of the mood. Those who have bought at these levels have done well so far.”
BTC/USD commented chart. Source: Dave the wave/ Twitter
He added that five months earlier, these MAs had correctly indicated the upcoming downtrend of the market. As a result, BTC/USD fell to a macro low of $17,600 in June.
BTC/USD 1-week candlestick chart (Bitstamp) with 50, 100, 200-week MA. Source: TradingView
After the Pi Cycle Bottom
As Cointelegraph reported, there are several charts on which the moving averages signal a bottom.
The classic Pi Cycle Top indicator, which has always correctly predicted the macro lows so far, already turned positive in July, thereby substantiating the assumption that $ 17,600 was actually a multi-year low.
However, commentator Miles Johal explained that the bulls would have to overcome even higher levels first to create a real uptrend.
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
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