Sunday, February 25, 2024

$16.8K Bitcoin now trades further below this key trendline than ever


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Bitcoin (BTC) is now additional beneath a key transferring common than it was on the pit of the March 2020 COVID-19 crash.

In a tweet on Jan. 4, common dealer and analyst Rekt Capital revealed simply how outstanding the present Bitcoin bear market actually is.

BTC value 200-week transferring common out of attain

Not solely has Bitcoin now spent extra time beneath its 200-week transferring common (WMA) than ever earlier than, it’s now additional beneath it than at any time in historical past.

Wanting on the weekly BTC/USD chart, Rekt Capital confirmed that as of Jan. 4, BTC/USD traded round 37% beneath the 200 WMA.

This, he famous, was “Deeper than the -31% retracement in March 2020.”

The numbers present attention-grabbing studying in a bear market which has yet to see BTC value retracements from all-time highs rival earlier bottoms in proportion phrases.

In March 2020, Bitcoin abruptly misplaced 60% in a matter of days as markets reacted to the primary wave of mass coronavirus lockdowns.

On the time, nonetheless, the most important cryptocurrency spent lower than two weeks beneath the 200 WMA — a transparent distinction with 2022. BTC/USD lost the trendline — which additionally figured within the 2018 bear market — final August, and has since didn’t reclaim it.

BTC/USD annotated chart. Supply: Rekt Capital/ Twitter

S&P 500 faces “March cycle low”

The scenario could worsen nonetheless.

Associated: Bitcoin analyst identifies new key levels as Ethereum price nears 3-week high

Analysts are at the moment betting on Q1 providing a further test of bulls’ resolve, even when it in the end closes with BTC value motion greater than at current.

For dealer, investor and entrepreneur Bob Loukas, in the meantime, correlated markets could themselves see their macro backside within the coming quarter.

Analyzing the S&P 500 on weekly timeframes, Loukas described the previous 12 months’s comedown as unparalleled in its textbook nature.

“This has been the cleanest Inventory bear market decline i’ve ever seen,” he told his Twitter followers.

“At present nonetheless factors to declines right into a March Cycle Low.”

S&P 500 annotated chart. Supply: Bob Loukas/Twitter

Bitcoin has underperformed both stocks and gold for the reason that FTX meltdown, Cointelegraph reported, leaving the door open for what optimists hope can be a sport of “catch up.”

Late final month, David Marcus, CEO and founding father of Bitcoin agency Lightspark, predicted that the “crypto winter” would outlast 2023 and even prolong previous Bitcoin’s subsequent block subsidy halving occasion, anticipated round April 2024.

The views, ideas and opinions expressed listed below are the authors’ alone and don’t essentially mirror or symbolize the views and opinions of Cointelegraph.