An analyst has pointed out how the 50-week moving average (MA) of Bitcoin has historically acted as a sort of magnet for the asset’s price.
50-Week MA Is Currently Situated At $75,500 For Bitcoin
In a new post on X, analyst Ali Martinez has discussed about the 50-week MA of Bitcoin. An “MA” is a technical analysis indicator that calculates the average value of any asset’s price over a given period of time and as its name suggests, moves in time, updating its value according to the changes in the price itself.
MAs can be useful tools for studying long-term trends in an asset, as they smooth out the price curve to remove any local deviations. An MA can be taken over any window of time, but there are some particularly popular choices like the 200-day.
In the context of the current topic, the time-range of focus is the 50-week. Here is the chart shared by the analyst, that shows the trend in this MA for Bitcoin over the past decade or so:
As is visible in the above graph, Bitcoin has been approaching this line following the latest market downturn. The asset has previously shown several retests of this level over the years.
“The 50-week moving average has historically acted as a magnet for Bitcoin $BTC during trend shifts,” explains Martinez. So far in the current cycle, the line has acted as support for the cryptocurrency, helping prevent the bull run from running out of steam.
At present, the 50-week MA is situated at $75,500. Given the current trajectory of the asset, it’s possible that a retest of the level may end up taking place once more. It only remains to be seen, though, whether the level would again provide support to Bitcoin, or if it would usher in the bear market.
In some other news, sentiment among the US investors has plummeted recently, as CryptoQuant founder and CEO Ki Young Ju has revealed in an X post.
In the chart, the data of the “Coinbase Premium Index” is displayed. This metric measures the difference between the Bitcoin price listed on Coinbase (USD pair) and that on Binance (USDT pair).
The former platform is mainly used by American investors, while the latter serves a global traffic, so the indicator’s value essentially tells us about how the behavior differs between the two demographics.
During the rally earlier, the Bitcoin Coinbase Premium Index spiked to a sharp positive level, suggesting the US-based whales were buying. Shortly after, though, it dipped back into the negative and has since plunged deeper into the zone, implying users on the exchange are doing some heavy distribution.
“Bitcoin market will likely remain slow until sentiment in the U.S. improves,” notes the CryptoQuant founder.
BTC Price
At the time of writing, Bitcoin is floating around $85,700, down more than 4% over the last 24 hours.
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
Keshav Verma
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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