After hovering around the $20,000 to $21,000 mark, Bitcoin is finally moving in the anticipated direction. As of writing, Bitcoin price is $18,926, down 10.47% in the last 24 hours, according to CoinMarketCap. This is leading to speculation on when and where the next Bitcoin support price could be.
Analysts predict Bitcoin to reach the $18000 level to find the next significant support level. “Below the $20,000 mark, the nearest significant support level is 10% lower at $18000 level.
Historic Trend To Be Breached?
In a rare development, BTC could make history this week by closing below the 200-week moving average. This behavior was previously observed only five times in the past. Based on recent calculations, Bitcoin’s 200-week moving average stands at around $21,700.
Amid speculation over the next Bitcoin support price, the current price is way below this important indicator. The last time Bitcoin intercepted the 200-weekly average last was at around $5,450 in 2020.
Where Is Next Bitcoin Support Price
Traders predict that the next Bitcoin bottom could be around the $15,500 range. Rekt Capital, a crypto trader, said the next Bitcoin low could be either around $19,000 or $15,500, based on Bitcoin’s historical data on weekly moving averages.
“Historically, Bitcoin tends to wick -14% to -28% below the 200-week moving average. A -14% wick this time around would translate to a ~$19,000 BTC. A -28% wick would mean Bitcoin could reach as low as ~$15,500 before reversing to the upside.”
Interestingly, Bitcoin also broke another significant milestone. Its all time high of around $19,700 in 2017 was also breached in this Bitcoin freefall. Also, with the latest fall Bitcoin touched the below $20,000 mark for the first time since $20,000. This could also mean increased regulatory pressure on the crypto space in the backdrop of back to back setbacks starting with Terra crash.
Meanwhile, the sentiment around Bitcoin’s prospects also seems to be weak among traders. Adding to this is the alarming Bitcoin Fear and Greed Index which is currently at ‘Extreme Fear’ status. The fear status has continued since last month but the current rating of six is the lowest recorded in the recent past.
Michael van de Poppe, a Bitcoin enthusiast, said the 200-weekly moving average structure looks to be in a ‘destructive market’. “Weekly RSI is on its lowest point ever + we’re swimming beneath the 200-Weekly MA. Destructive market structure.”
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