The Importance Of Bitcoin's 200-Week Moving Average
The Bitcoin price decreased by 43% yesterday, the biggest daily decrease on record. However, all hope is not lost.
MAJOR HOPIUM - The price has yet to close below the 200-week MA, even though it has decreased significantly below it with the wick that reached $4000. There are two and a half days until the weekly close. The price has never reached a weekly close below this MA, even though it has reached a wick below it three times, on January and August (twice) 2015. Both times the price closed above the MA and continued the upward trend.
This also fits with the halvening angle, since the 2015 decreases occurred slightly prior to the second halvening.
Therefore, if the price bounces and closes above $5500 it could definitely mean that we are in a similar point in the cycle as on August 2015. While an accumulation phase is probably necessary, this could be the bottom for the foreseeable future.
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The price has clearly moved above the 200-week MA. The proposed movement has a much higher chance of transpiring now IMO, especially if the price validates the MA as support in the near future.