Bitcoin (BTC) could potentially re-enter the $20,000 range, but a new analysis predicts that the coming weeks will be a good time to buy. In its latest market post on February 24, Decentrader outlined the remaining support zones between the current Bitcoin spot price and $20,000. As Kriptokoin.com, we provide the details…
Analysts look to BTC’s 20 and 200-week moving averages for clues
Russia’s military intervention in Ukraine as Asia, Europe and the USA scare It sent markets into the abyss on Thursday as stocks and cryptocurrency continued their steady downtrend. Bitcoin has lost more than 10% in less than 24 hours and analysts believe the worst is yet to come. As a result, the Decentrader report, like many other experts, is wary of its trading decisions. Market expert Philip Swift sums it up:
In times of uncertainty like this, it’s definitely worth being clear about your plan. Investors can survive if they have clear override levels and effective risk management. We are reaching historically important support levels for long-term investors, and anywhere in this range is likely to be a solid spot for the dollar-to-cost average in the coming weeks.
Bitcoin’s 200-week moving average (WMA), currently above $20,000 and climbing, is an absolute streak for bulls, although it has never been compromised in previous bearish markets. Analyst “Swift” is feeling a dip below $30,000 with takeoffs below the 20-week moving average, similar to the March 2020 COVID-19 crash pit. The report addresses this situation as follows:
If the price continues to decline, the 20WMA Divergence bands indicate a possible support zone for Bitcoin between $29,382 and $25,253. Price deviated from the 20WMA most recently in the March 2020 covid crash – but we got closer again in the summer 2021 crash.
While impossible to predict, upside targets for Bitcoin (BTC) in case of a change in wealth are $37,500 and $41,100, according to the report.
Bitcoin users are getting tired as gold prices soar
Decentrader is not alone in telling investors not to let their emotions get the best of them during these difficult times. A popular Twitter analyst, Crypto Chase, echoed this sentiment, suggesting that long-term methods need not be abandoned:
The next few days are expected to be turbulent and headline-based. Most people (including me) would probably be better off flat, but only time will tell. Business as usual, but in a turbulent time. In his most recent report, he advised caution.
Meanwhile, the struggle between gold and digital gold continues as XAU/USD hits $1,970 and BTC/USD can barely recover from $34,300 overnight lows.
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