BTC in the short term continues to correct without a sign of reversal, and therefore it is irrelevant to make a short-term analysis in this ongoing trend. However, we will look at the long term weekly chart where you can clearly see how important support the price is heading. Will she keep it, or will it fail for the first time in history?
The chart below is a logarithmic weekly graph. The blue curve interprets weekly moving average indicator period 200 (MA200). This indicator has always been a support in the past, which ended the long-term correction and represented ideal accumulating zone. The question remains whether this will happen now. If not, it will be the first time.
BTC goes for key support. Source: TradingViewBTC is heading to MA200
On the RSI we also see that the curve points to oversold threshold, which also in the past represented the formation of the absolute bottom of the correction. However, RSI never fell below 30 points. The indicator seems to predict the same bottom. However, the formation of the bottom can take several months. Therefore, to eliminate the scenario that BTC does not maintain MA200, it is advisable to wait for it to react. MA200 is currently at a price of approx $ 22,280.
If the price again forms in lower volatility directly above MA200, it is a signal that the price has probably bottomed out on this indicator. The only time the rebound was immediate was during March 2020, when the markets had the strongest negative fundamentals in recent years. At that time, the price even fell below the MA200, but the close price of the weekly candle returned above. And that’s exactly what we’re going to watch now.
