BTC is now trading below its 200-week moving average (200WMA). This is not a common observation and buying below this well-known technical indicator has historically been a profitable strategy. However, it’s noteworthy that bitcoin has traded below the 200WMA for almost two months. We haven’t seen this before, and it can look like the important indicator has been flipped to resistance. This is undoubtedly a bearish technical signal. The next major support levels on a weekly scale could be around $16,000 or even down between $11,000-$12,000. However, on the bright side, bitcoin is still trading above its 2017 peak, and it looks like the 2017 top is now acting as a solid support level. So, where is the next support level? With the stock market clearly leading the way for bitcoin and other cryptocurrencies this year, it’s dangerous to only consider technical levels when evaluating the bitcoin price.
Source: Tradingview (BraveNewCoin Index)