One analyst predicts a drop below $30,000, citing the fact that historical support levels are still far from the current Bitcoin spot price.
Bitcoin (BTC) may yet re-enter the $20,000 range, but a new analysis predicts that the following weeks will be a good time to buy.
Decentrader, in its most recent market update on Feb. 24, outlined the remaining zones of support between the current Bitcoin spot price and $20,000 in its latest market update.
For clues, analysts look at BTC’s 20-week and 200-week moving averages.
Russia’s military intervention in Ukraine has sent markets into a tailspin on Thursday, with equities and cryptocurrency maintaining a steady downward trend as fear grips Asia, Europe, and the United States.
Bitcoin has already lost 12% in less than 24 hours, and analysts believe the worst is yet to come—reactions to Russia’s onslaught are still coming in, as are prospective financial sanctions.
As a result, Decentrader, like many other analysts, is wary of trading judgments.
“It pays to be absolutely clear about your plan at times of uncertainty like these.” “Traders will be able to survive if they have clear invalidation levels and effective risk management,” expert Philip Swift stated.
“We are reaching historic significant support levels for longer-term investors, and anywhere in this range is likely to be a solid spot to dollar-cost-average over the next weeks.”
While it has never been endangered in prior down markets, Bitcoin’s 200-week moving average (WMA), which is presently above $20,000 and rising, is an absolute line in the sand for bulls.
Swift feels a drop below $30,000, with departures below the 20-week moving average, is more plausible, similar to the March 2020 COVID-19 crash pit.
“Should price continue to fall, the 20WMA Deviation bands show a potential support zone for Bitcoin between $29,382 and $25,253,” according to the update.
“The last time price strayed that far from the 20WMA was during the March 2020 covid crash — but we got near again during the summer 2021 crash.”
While impossible to conceive, upside objectives for Bitcoin in the case of a change in fortunes are $37,500 and $41,100, according to the report.
Bitcoiners are becoming jaded as gold prices rise.
Decentrader is far from alone in telling traders not to let their emotions get the best of them in these difficult times.
Crypto Chase, a popular Twitter account, echoed this sentiment, suggesting that long-term methods do not need to be abandoned.
“The next several days are likely to be tumultuous and headline-driven. Most people (including myself) would probably be better off flat, but only time will tell. Trade as usual, but at a turbulent time. In his most recent update, he advised caution.
Meanwhile, the struggle between gold and digital gold rages on, with XAU/USD touching $1,970 and BTC/USD only marginally recovering from overnight lows of $34,300.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
