Bitcoin (BTC) has been taking a breather since July. A slight correction according to the bears, the beginning of a bullish wave according to the bulls. The 200 weekly moving average (MA), on the other hand, indicates that the price of bitcoin is going to experience a running of the bulls for the months to come.
Bitcoin (BTC) Bounces Off Key Support Zone
After a long depression, bitcoin is coming to a key support level: its 2017 high, around $19,000. For most long-term investors, this was the ideal value to add BTC to their portfolio. They are thus taking advantage of a bullish trend in bitcoin. For the less optimistic, the price will further dig down to $13,000, its 2019 high.
From a technical point of view, confirmations are missing to deduce the reversal of this very strong downtrend. Thus, we rather put on the fact that the rebound of the price around $17,000 is only a slight correction. Let’s see what the favorite indicator of long-term investors tells us: the weekly 200 MM.
Bitcoin (BTC): beginning of a bullish phase according to the 200 moving average?
Based on historical data, the price of bitcoin tends to recover when it touches the 200 moving average. With this, we can say that the DIP is reached, and the value of this cryptocurrency will not go down below $19,000. Looking closer, the price breaks the 200 moving average ($22,330) in June, and touches the support zone around $19,000. After that, bitcoin bounces back and breaks above the 200-MA ($22,821) in July. This kind of scenario usually precedes the reversal of a downtrend. This is why we can say that a bullish trend is imminent for the mother of cryptos.
Do these different signals indicate the beginning of a long-term bullish trend? It is probable. According to this indicator (MM200), bitcoin may start to rise for the coming months. However, if you are investing now, consider liquidating your position in October. Indeed, this period marks the return of major institutional investors to the market, after the summer holidays. Thus, the crypto market may see a strong hold at the start of this month.
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The Cointribune editorial staff
SEO Web Editor for 3 years, I specialize in crypto currencies, blockchain, trading, and NFTs.