Bitcoin retests moving average that marked major market bottoms.
The price of Bitcoin is decreasing, and the cryptocurrency market is experiencing a downfall while the United States SEC seems to be targeting the industry. However, before a significant decline happens in the digital asset market, the leading cryptocurrency, Bitcoin, is standing firm at a crucial level.
Actually, BTCUSD is revisiting an essential moving average that has previously indicated every major bear market bottom. Take a look at the chart below.
Bitcoin retests the 200-week moving average | BTCUSD on TradingView.com
SEC Onslaught Brings Bitcoin Down Against The 200-Week Moving Average
The cryptocurrency market is struggling. On a weekly basis, BTCUSD has touched the 200-week moving average. The decline follows a series of accusations made against the top crypto exchanges by the SEC this week. Binance and blockchain have both been targeted.
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- Brian Brooks, ex-CEO of Binance.US, claims that CZ was the one in charge of the exchange, not him.
Although the SEC onslaught mostly focused on altcoins that are now considered securities, it has also impacted Bitcoin. Nonetheless, Bitcoin is holding on tight.
The 200-week moving average is an ideal location for a rebound since it has served as a bear market bottom for Bitcoin in the past.
The line must hold for Bitcoin bulls | BTCUSD on TradingView.com
Why It’s Critical For BTCUSD To Hold For Renewed Confidence In Crypto
When we zoom out, we can see that BTCUSD touched this line several times in 2015, and it served as the bottom bounce once again in 2018 and in 2020 following the COVID crash.
Due to its successful history, it was particularly surprising to see the moving average lost in 2022 after the LUNA crash. As a result, Bitcoin spent a total of 36 weeks below the long-term span. When the US banking sector began to falter in March 2022, BTCUSD skyrocketed above the line for the first time since losing it.
Now, it has returned to the line, even breaking through the critical line. At the moment, the support is holding, and the weekly chart is forming a hammer, which is a potential bullish reversal candlestick pattern. It is too early to say, though, since there are still several days left before the weekly candle closes.
If Bitcoin can remain above the 200-week moving average, it may indicate that the market has reached its bottom and lead to renewed confidence in the crypto industry. Losing the line again would be unprecedented, but few believed it would be lost in 2022.
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