- Bitcoin has traded beneath the 200-day transferring common for over every week
- The transferring common is now a resistance zone for Bitcoin across the $40k worth degree
- Bitcoin can also be buying and selling beneath the 6-month transferring common
- BTC’s bullishness is hinged on reclaiming these two MAs in any other case a bear market will ensue
Bitcoin may need entered a bear market primarily based on the truth that the King of Crypto has didn’t reclaim the 200-day transferring common as assist. On the time of writing, Bitcoin has traded beneath this essential transferring common for eleven days. The 200-day MA is at present on the $40k worth degree that can also be appearing as a robust resistance degree for Bitcoin.
Bitcoin Consolidating Beneath the 200-Day MA is Not a Good Signal
In a Twitter commentary earlier this week, Bitcoin and crypto analyst, MagicPoopCannon, identified that BTC consolidating beneath the 200-day transferring common was ‘not a great signal’. He additionally reiterated that this transferring common is now a resistance space and Bitcoin has by no means regained its bullish momentum if it traded over 3 days beneath this line. He explained:
To not rain on the bull parade, however BTC has now spent seven [currently 11] days beneath the 200 MA. By no means within the historical past of BTC, has it spent greater than 3 days beneath the 200, and gone on to make new all time highs, and that solely occurred in 2013. We’re most definitely in a bear market.
Bitcoin is Additionally Buying and selling Beneath the 6 Month MA Which is Bearish
In a follow-up to his preliminary evaluation, Magic additionally identified that Bitcoin was additionally buying and selling beneath the essential 6-month transferring common. He additionally warned {that a} month-to-month shut this month, beneath this transferring common, will verify that Bitcoin is certainly in a bear market.
He shared his evaluation of a possible Bitcoin bear market by way of the following statement and accompanying chart.
BTC has confirmed the 200 day transferring common (in purple) as preliminary resistance, and it could shut the month beneath the 6 month transferring common (in orange.) Neither of these issues have ever occurred in a bull market, which makes it very seemingly we’re in a bear market now.
