Bitcoin btc
$ usd

Bitcoin (BTC) Falls to 200-Week MA for Fifth Time in History

2 mins
Updated by Geraint Price
Join our Trading Community on Telegram

In Brief

  • BTC has reached the 200-week moving average
  • It has created a short-term double bottom pattern
  • There is resistance at $22,800
  • promo

Bitcoin (BTC) has dropped to a crucial long-term moving average (MA), below which it has never reached a weekly close.

BTC has been falling since reaching an all-time high price of $69,000 in Nov. The downward movement has so far led to a low of $20,715 on June 15. 

An interesting development is the fact that the price has reached its 200-day moving average (MA). This is the fifth time (green icons) it has done so since the beginning of its price history.

Interestingly, the price has never reached a weekly close below this level. While it decreased below it in March 2020, it bounced and created a long lower wick, reclaiming the line shortly afterwards. 

Short-term double bottom

The daily chart does not show any reversal signs, since the price has been free falling without a sign of a bottom. 

However, the daily RSI is the lowest it has been since Jan (green icons). At the time, an upward movement of 46% followed.

The 30-minute chart shows that the price has created a double bottom at $21,000 relative to the price on June 14.

Furthermore, it has bounced at the support line of a descending parallel channel. Such channels usually contain corrective movements, meaning that an eventual breakout from it would be expected. 

If one occurs, the closest resistance area would be at $22,800.

BTC wave count analysis

The short-term wave count shows that BTC might have completed a five-wave downward movement (black).

The current low has been made at a confluence of Fib levels between $21,850 and $22,650. These are given by the 1.61 external Fib retracement of wave four (black) and the length of wave one (white).

So, it is possible that a bottom has been made.

Additionally, if the entire downward movement since the all-time high is an A-B-C corrective structure (red), then waves A:C have had an exactly 1:1 ratio when using the Fib chart. 

So, this supports the findings from the weekly time frame and those from the short-term count that suggest a bottom has been reached or is very close.

For Be[in]Crypto’s latest bitcoin (BTC) analysisclick here


In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.

Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing...