Analyst Rekt Capital recently gave an update about the Bitcoin price trends. The analyst opened up about a noticeable shift in the trend, and a key takeaway from the analysis is the potential support levels Bitcoin may encounter during its price journey.
He mentioned a specific moving average, the 111-day moving average, which has recently been a crucial point of interest. The analyst highlights that historically, in the year preceding a Bitcoin halving event, the cryptocurrency has shown oscillation around this 111-day moving average.
For instance, in 2015, a pre-halving year, Bitcoin experienced price fluctuations around this moving average before breaking above it, leading to a new bull market. The same pattern was observed in the year before the 2020 halving, showing a lot of downside volatility below the moving average.
He then discussed the importance of this moving average in Bitcoin’s price history. It typically represents higher prices as time progresses. Therefore, the current moving average is approximately $28,000, but this level is not set in stone and may increase over time.
The analyst then stresses that a retest of this moving average is likely as Bitcoin progresses through its market cycles. In the analyst’s view, a pullback to around $28,000 would be a possible retesting point. However, the specific level depends on when this pullback occurs and Bitcoin’s price action.
The moving average, which was historically a resistance and supply zone, could potentially become a demand area and new support as Bitcoin evolves. In conclusion, the analysis suggests that Bitcoin’s price may oscillate around the 111-day moving average as the cryptocurrency continues its journey, with potential support levels around $28,000 or higher, depending on price developments.