Can The 600-Day MA Support Line Push Bitcoin Again?
Charts show the Bitcoin 600-day moving average (MA) has once again met with the BTC price curve, will the line act as support for the crypto once again?
Bitcoin Price Curve Is Once Again Touching The 600-Day MA
As pointed out by an analyst in a CryptoQuant post, the BTC price has once more dropped down to the 600-day MA support line.
A “moving average” (or MA in short) is an analytical tool that averages a given quantity over a specific period of time, and constantly updates itself as time passes and the value of said quantity (the price of Bitcoin in this case) changes. Hence the “moving” in the name.
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An analyst can choose to take an MA over any time period, whether that be only one minute, or even one thousand days.
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As you can see in the above graph, since the price has declined following the all-time high formation last year, the value of Bitcoin has made touches of the 600-day MA several times.
During each of those retests, the 600-day MA curve line has acted as support for the crypto’s price, and helped it propel back up.
Now once again the two lines have touched each other, but it remains to be seen whether support will hold this time or not.
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If the price trends below the 600-day MA curve, then Bitcoin may observe some real decline, just like when it lost the 200-day MA support.
BTC Price
At the time of writing, Bitcoin’s price floats around $39.8k, down 9% in the last seven days. Over the past month, the crypto has accumulated 2% in gains.
The below chart shows the trend in the price of the coin over the last five days.
After holding above the $40k level for almost a month, Bitcoin seems to have once again declined below the level. Following the drop, the price has moved sideways over the last couple of days.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com