Well-known trader Ton Weiss noted that he does not like the current technical indicators of BTC, and the asset itself is trying to find support below the $ 50,000 mark.
Bitcoin could break the 50-week moving average and close below it, he said. The last time this situation has led to the fact that Bitcoin moved to the 200-week moving average, which is currently at the level of about $ 20,000:
“If Bitcoin goes below the 50-week moving average, then the 200-week moving average comes into play and that’s not good. This situation is driving BTC to the $ 20,000 mark. Although, in a sense, it will be beneficial, because times are going to be very hard for Shitcoins. “
Weiss reviewed the pandemic-triggered market crash in March 2020 and highlighted that the 200-week moving average acted as strong support that quickly pushed BTC to new highs:
“There will be huge panic, but in March 2020, the 200-week moving average helped push BTC to new all-time highs. Therefore, reloading the market to the 200-week moving average will not be such a bad thing. “
Although the trader is preparing for the worst, he believes that the bottom of Bitcoin is much closer than the $ 20,000 level:
“The above scenario is unlikely and I believe that Bitcoin will bounce somewhere around $ 40,000 without dropping to past lows.”
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