The price of Bitcoin could bottom out at $ 15.5,000 if it tries again at this historic lifecycle support level

The price of Bitcoin could bottom out at $ 15.5,000 if it tries again at this historic lifecycle support level

Bitcoin (BTC) could return to unprecedented levels before its 2020 bull market if history repeats itself.

That’s according to a new analysis released on May 24, which studied the interaction of bitcoin and its 200-week moving average (WMA).

Bitcoin floor target could be between $ 15,500 and $ 19,000

In the Twitter thread, Rekt Capital is very popular with trader and analyst Explain how the BTC / USD pair might behave in the event of a fall to retest the 200WMA.

A lifeline throughout bitcoin’s history, the 200WMA is an ever – rising end of support line that has never been broken for good.

This level is currently located at around $ 22,000. Data from Cointelegraph Markets Pro and TradingView show that this level continues to act as a line in light of bear markets.

In the past, he notes that Rekt Capital, bitcoin “is” badly “below 200WMA – briefly catching up before rising above, allowing it to remain supportive and unstoppable.

However, these peaks accounted for up to 28% of the spot price, which means that if a similar peak were to occur now, bitcoin would end at $ 15,500.

“BTC is trending from -14% to -28% below the 200-MA. And since 200-MA BTC is now the price point ~ $ 22,000 … Bitcoin would lead to a bearish wick of -14% below the 200-MA at ~ $ 19,000, ”wrote Rekt Capital.

“And if BTC were to repeat the March 2020 bearish wick depth below the 200-MA, the price of BTC would return to around $ 15,500.”

1 week candle chart BTC / USD (Bitstamp) with 200WMA. Source: Trade View

“Be careful” below 23,000

As Cointelegraph reported, there was a lot of talk about bitcoin price action on May 24 compared to March 2020, at the height of the COVID-19 cross-over crash.

See also: Bitcoin is falling to fill CME vacuum amid claims it will take two years to reach new highs

Rekt Capital further looked at historic declines from bitcoin’s full-time highs and “death crosses” this month, leaving a price target for BTC at $ 22,700 – almost exactly at the current 200-MA.

“BTC is slowly approaching the 200-MA Historically, the 200-MA tends to provide great opportunities with outsized ROI for long-term BTC investors (green circles),” he said alongside a graph showing interactions.

“If BTC actually reaches 200-MA support … it would be wise to pay attention.”

BTC / USD annotated chart with the 200-week MA. Source: Rekt Capital / Twitter

Co-analyst PlanB, creator of BTC’s stock-to-flow price patterns, has also long supported the role of 200WMA in support.

The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of All investments and transactions involve risk, you should do your own research before making a decision.

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