Is Bitcoin Gonna See Another Big Drop Soon? Historical Trend May Say Yes
22 Avril 2022 - 9:00PM
NEWSBTC
Historical trend of the 200-day and 600-day MAs may suggest Bitcoin
could observe another big drop in the near future. Current Bitcoin
Pattern Has Historically Lead To A Big Drop In The Price As pointed
out by an analyst in a CryptoQuant post, the current Bitcoin price
looks to be squeezed between the 200-day and 600-day MA curves. A
“moving average” (or MA in short) is an analytical tool that
averages the price of Bitcoin over any desired range. As its name
suggests, this average constantly updates itself as each day passes
by and new prices are observed. The main benefit of an MA is that
it evens out any local price fluctuations, and displays the trend
as a smoother curve. This makes the tool quite useful for studying
long-term trends, where day-to-day price changes aren’t as
important. Related Reading | Bitcoin LTHs Hold Significantly
More Loss Now Compared To May-July 2021 An MA can be applied on any
range of period. For example, a week, a hundred days, or even just
one minute. The below chart shows the trend in the 200-day and
600-day Bitcoin MAs over the past several years. BTC price seems to
be stuffed between the two moving averages right now | Source:
CryptoQuant As you can see in the above graph, a trend related to
these MAs and the Bitcoin price has occurred following previous
all-time highs. It seems like during 2014 and 2018, after the
respective ATHs formed and the price dwindled down, for a period
the price was squeezed between the 200-day and 600-day MAs. Related
Reading | Why A “Boring” Bitcoin Could Be A Good Thing After
staying some time in the region, the MAs crossed over each other
and the crypto observed a large drop in its price. Also, while this
happened, the Bitcoin volume also experienced a downtrend. Now, it
looks like a similar pattern is starting to form this time as well.
The price has dropped down since the November ATH, and it’s now
stuck between the two MAs. If the pattern holds and the moving
averages cross over again, then another big drop may just be in
store for the value of Bitcoin. BTC price At the time of writing,
Bitcoin’s price floats around $40.4k, up 1% in the last seven days.
Over the past month, the crypto has lost 1% in value. The below
chart shows the trend in the price of the coin over the last five
days. BTC's price seems to have seen a plummet over the past day |
Source: BTCUSD on TradingView Bitcoin showed some strong upwards
momentum a couple of days back as it seemed to be approaching
another retest of the $43k level. However, before any such revisit,
the price plunged down in the last 24 hours. Featured image from
Unsplash.com, charts from TradingView.com, CryptoQuant.com
Quant (COIN:QNTUSD)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Quant (COIN:QNTUSD)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024