Bitcoin (BTC) could return to levels not seen since before the 2020 bull market if history repeats itself.
This is according to a new analysis released on May 24, which studied Bitcoin’s interaction with a 200-week moving average (WMA).
The Bitcoin floor target can be between $ 15,500 and $ 19,000
At Twitter threadpopular trader and analyst Rekt Capital explains how BTC / USD could act if it falls to retry 200WMA.
A living line throughout Bitcoin’s history, 200WMA is the last continuous support line that has never been broken.
In the past, Rekt Capital noted, Bitcoin has been “evil” below 200WMA – briefly capitulating before rising back to the top, in order to remain in support and not even return to resistance.
These wicks, however, have folded up to 28% of the spot price, meaning that if the same wick happens now, Bitcoin will end up at $ 15,500.
“BTC tends to wick -14% to -28% below 200 -MA. And since $ BTC 200 -MA now represents a price point of ~ $ 22000 … A -14% downside wick below 200 -MA will result. At ~ $ 19000 Bitcoin, ”wrote Rekt Capital.
“And if BTC is going to repeat the depth of the March 2020 wicking downside below the 200-MA $ BTC will revisit the price point of ~ $ 15500.”
“Ignore” under $ 23,000
As a Cointelegraph reportedmuch is made of Bitcoin price action now compared to March 2020 at the height of the COVID-19 cross-market crash.
Capital Rec additionally examined historical drawdowns from all -time highs and Bitcoin’s “death passes” this month, produced a BTC price target of $ 22,700 – almost exactly at 200WM now.
“BTC slowly approaching 200-MA Historically, 200-MA tends to provide a very good opportunity with a very large ROI for long-term $ BTC investors (green circle),” he adds alongside a chart showing interactions.
“Should BTC really reach 200-MA support … It would be wise to pay attention.”
PlanB analysts, creators of the BTC stock-to-flow price model, also have it long champion the role of 200WMA as a support.
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