Popular crypto trader outlines how Bitcoin (BTC) can overcome week-long bearish price moves
A popular crypto analyst and trader reveals what leading digital asset Bitcoin (BTC) needs to do to regain key support levels.
Pseudonymous analyst Rekt Capital tells his 328,000 Twitter followers that the top crypto asset by market cap lost its 200-week moving average weeks ago, but is yet to convert it into resistance.
The trader says if the King Crypto could hold the $19,500 area, it could reconsider its 200-week moving average.
“BTC is struggling near the ~$19,170 support. What is interesting, however, is that BTC is at a subtly higher low compared to the late June lows. BTC lost the 200-week moving average weeks ago but has not flipped it to new resistance. If green support holds, BTC could revisit the 200-week moving average.”
Source: Rekt Capital/Twitter
Rekt Capital then notes that Bitcoin purchase volume is now similar to weeks ago. However, the trader says the price of BTC was less affected by the purchase, even though the token costs less.
“This week’s BTC buying volume is similar to [the] Purchase volume from a few weeks ago. But weeks ago [a] a similar volume led to a +10% move to higher prices. This week, similar buying volume has triggered a small +4% reaction at lower prices and most of that has receded.”
Recently, the analyst also outlined how Bitcoin was rapidly approaching its bear market bottom. He said that BTC tends to bottom a year after its previous bull market peak. According to the trader, it has been around 300 days since Bitcoin hit its last bull market peak.
BTC is trading at $19,950 at the time of writing, a fraction of the daily gain.
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