Bitcoin Retests Moving Average That Marked All Major Market BottomsJune 8, 2023
Bitcoin price is falling, crypto is crumbling, and the United States SEC appears to be out for blood. But before a bloodbath occurs across the digital asset market, the top cryptocurrency by market cap is making a stand at a key level.
In fact, BTCUSD is retesting an important moving average that in the past marked ever single major bear market bottom. Take a look below.
Bitcoin retests the 200-week moving average | BTCUSD on TradingView.com
SEC Onslaught Brings Bitcoin Down Against The 200-Week Moving Average
The cryptocurrency market is on the ropes, quite literally. On weekly timeframes, BTCUSD has touched back down on the 200-week moving average. The pullback comes in the wake of a string of SEC-made charges against top crypto exchanges this week. Both Binance and Coinbase have been caught in the crosshairs.
Although the onslaught mostly focused on altcoins which are now deemed securities, the sell pressure has been able to cut Bitcoin down a few notches. But it is holding on for dear life.
The 200-week moving average makes for an ideal location for a bounce, as this is where Bitcoin has put in a bear market bottom in the past.
The line must hold for Bitcoin bulls | BTCUSD on TradingView.com
Why It’s Critical For BTCUSD To Hold For Renewed Confidence In Crypto
Upon zooming out, we can see that a major bottom was put in when BTCUSD touched the line several times in 2015. It served as the bottom bounce yet again in 2018, and one more time in 2020 after the COVID crash.
Considering its track record of success, it was especially shocking to see the moving average lost in 2022 following the LUNA collapse. Bitcoin then spent a cumulative 36 weeks below the long-term span. When the US banking sector began to fall apart in March 2022, BTCUSD rocketed above the line for the first time since losing it.
Now, it finds itself back there, even piercing the ever-critical line. Support is holding at the moment and the weekly is currently forming a hammer – a potential bullish reversal candlestick pattern. It is far too early to tell, however, considering there are still several days left before the weekly candle closes.
If Bitcoin can hold above the 200-week moving average, it could tell the market that the bottom is in and finally lead to some renewed confidence in the crypto market. Losing the line again would be unprecedented, but then again, few thought it would be lost in 2022.
Source: Read Full Article