If history repeats itself, the leading cryptocurrency Bitcoin (BTC) could return to levels not seen since the 2020 bull market. As Kriptokoin.com, we are transferring the details.
If this scenario happens, Bitcoin could drop to $15,500
According to a new analysis published May 24 that examines Bitcoin’s interaction with its 200-week moving average (WMA). The floor price target could be between $15,500 and $19,000. Popular investor and analyst Rekt Capital explained in a Twitter post what could happen if BTC/USD drops to retest the 200WMA. A lifeline throughout Bitcoin’s history, 200WMA is an ever-rising final support line that has never been definitively broken. The level, currently around $22,000, shows that it continues to act as a streak when it comes to bear markets.
The analyst states that it is very bad for the price to go down here and the moving average in question should remain as support. Rekt Capital also points out that this level is a historical buying opportunity. However, these wicks are up to 28 percent of the spot price, meaning if a similar wick happens now, Bitcoin will reach $15,500. The analyst said the following on the subject:
BTC tends to wick -14 percent to -28 percent below the 200-MA. And since the BTC 200-MA now represents the $22,000 price point… a -14 percent downside wick below the 200-MA would result in a price of ~$19,000. And if BTC repeats the downward wick depth below the 200-MA in March 2020, it could revisit the $15,500 price point.
Watch out for these levels
Rekt Capital has studied historical dips from all-time highs and Bitcoin’s death cross this month, with a BTC price target of $22,700 produced. This level is almost at the current 200WM. The analyst said:
BTC is slowly approaching the 200-MA. Historically, the 200-MA tends to offer great opportunities for long-term BTC investors (green circles) with great ROI. If BTC does indeed reach the 200-MA support… It would be wise to watch out.
Another popular analyst, PlanB, the creator of stock-to-flow Bitcoin price patterns, has long argued that the 200WMA plays a supporting role.
