Bitcoin has been on a downward spiral since Elon Musk described it as 'fossil fuel powered' and saying that for that reason, Tesla won't be willing to accept Bitcoins.
You could argue that Bitcoin was due for a correction in any case - this has been one of the longest week-on-week rises in Bitcoin's history: 16 weeks straight up from $10.5k to $41.9k, followed by 11 weeks from $32.5k to $64.8k.
The question on most people's minds right now is - is it all over? Are we going into a three year bear market again? Or will Bitcoin bounce somewhere and then continue higher towards the end of the year?
One way we can tell trend reversals is by using the 200 Simple (Daily) Moving Average. The Bitcoin price is currently sitting on the 200 SMA, which you can see as the red line on the chart above. A sharp break of the 200 SMA could indeed see us moving into a bear market, while a bounce here could see the Bitcoin bull trend continue.
We'll soon see how this plays out!
Which do you think it'll be? Let me know in the comments.
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Coin Metrics:
The most recent price of BTC at the time of writing is: $39244.88.
The 200 Simple Moving Average (SMA) is at: $39790.53.
The percentage distance from the latest BTC price and the 200 SMA is: -1.0%.
A coin which has a price less than its 200 SMA is less costly on average than at any other time, and so this might be a good time to buy. Beware though that this may also be a part of a bearish trend, where the price might drop even further.
Average Candle Height (ACH) for BTC: 5.56%.
Average Candle Height is calculated as the average height of all candles (high - low) as a percentage of the high price. Bitcoin typically has about 5% ACH, while large market cap coins like Litecoin have around 8% ACH. Exceptionally volatile coins like 1INCH can have 15% ACH or more.
The number of 1d candles measured in this calculation were: 500.
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Happy trading, folks! Please like and follow if you'd like to see more of my content :)
You could argue that Bitcoin was due for a correction in any case - this has been one of the longest week-on-week rises in Bitcoin's history: 16 weeks straight up from $10.5k to $41.9k, followed by 11 weeks from $32.5k to $64.8k.
The question on most people's minds right now is - is it all over? Are we going into a three year bear market again? Or will Bitcoin bounce somewhere and then continue higher towards the end of the year?
One way we can tell trend reversals is by using the 200 Simple (Daily) Moving Average. The Bitcoin price is currently sitting on the 200 SMA, which you can see as the red line on the chart above. A sharp break of the 200 SMA could indeed see us moving into a bear market, while a bounce here could see the Bitcoin bull trend continue.
We'll soon see how this plays out!
Which do you think it'll be? Let me know in the comments.
---------------
Coin Metrics:
The most recent price of BTC at the time of writing is: $39244.88.
The 200 Simple Moving Average (SMA) is at: $39790.53.
The percentage distance from the latest BTC price and the 200 SMA is: -1.0%.
A coin which has a price less than its 200 SMA is less costly on average than at any other time, and so this might be a good time to buy. Beware though that this may also be a part of a bearish trend, where the price might drop even further.
Average Candle Height (ACH) for BTC: 5.56%.
Average Candle Height is calculated as the average height of all candles (high - low) as a percentage of the high price. Bitcoin typically has about 5% ACH, while large market cap coins like Litecoin have around 8% ACH. Exceptionally volatile coins like 1INCH can have 15% ACH or more.
The number of 1d candles measured in this calculation were: 500.
---------------
Happy trading, folks! Please like and follow if you'd like to see more of my content :)