Taking a look at the log scale of Bitcoin
on a weekly chart, we can see the current PA eerily resembles that of 2014, as shown by the arrows. in 2014, price peaked around $1150 before retracing back down to the $350-400 range followed by a brief accumulation phase. Following that, price rocketed above the 20 week moving average, but failed to maintain upside momentum. Eventually, price lost the 20 week moving average as support, and ended up starting a new downtrend to new local lows around the $200 price range. Comparing that to the current price action, we can see a lot of similar signs; price peaked at 20k, retraced all the way down to 3k, followed by a brief accumulation phase, followed by a rocket above the 20 week MA. Now, we are stalling, similar to how we did in 2014. The question now becomes: will the 20 week MA hold as support and be the launching point for further continuation to the upside, or will it eventually break and be the start of a new downtrend to potentially new lows like we saw in 2014?
MA Guide (All Weekly for this chart):
20 MA in Purple.
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