🔥 Bitcoin And The 50-Week SMA
Lately I've been making a couple of long-term analyses on Bitcoin and the current state of the market. For today, I'd like to zoom in on the relationship between the BTC and the 50-week SMA.
Apart from the fact that the SMA is a great indicator for general bullishness (or bearishness) in the market, it plays a vital role in the ending days of a bull-market.
In the screenshot above you can see the 50-week SMA functioned as a strong support after the 2014 top had been reached. BTC saw an +80% increase in price after hitting the SMA.
A similar thing occurred after the 2017 top. After BTC hit the 50-week SMA we saw a strong bullish move of around +50%.
Not saying that history will repeat itself again, but I think the 50-week SMA offers a nice perspective nevertheless.
As you might see on the current chart of BTC, we've already hit the SMA once before. Furthermore, we're currently trading at the SMA itself. So, in case that the SMA will hold, we might see a ~50% upwards move in the coming weeks, bringing BTC back to around 43k.
On the other hand, if this week's price will close below the 50-week SMA we should be prepared for a further fall, potentially even hitting 25k in the near future.
Happy trading!
Apart from the fact that the SMA is a great indicator for general bullishness (or bearishness) in the market, it plays a vital role in the ending days of a bull-market.
In the screenshot above you can see the 50-week SMA functioned as a strong support after the 2014 top had been reached. BTC saw an +80% increase in price after hitting the SMA.
A similar thing occurred after the 2017 top. After BTC hit the 50-week SMA we saw a strong bullish move of around +50%.
Not saying that history will repeat itself again, but I think the 50-week SMA offers a nice perspective nevertheless.
As you might see on the current chart of BTC, we've already hit the SMA once before. Furthermore, we're currently trading at the SMA itself. So, in case that the SMA will hold, we might see a ~50% upwards move in the coming weeks, bringing BTC back to around 43k.
On the other hand, if this week's price will close below the 50-week SMA we should be prepared for a further fall, potentially even hitting 25k in the near future.
Happy trading!
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🔥Premium Signals: fierytrading.com
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