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