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An analyst has explained how a moving average (MA) that has historically served as the boundary for bear markets is situated at this level.
Bitcoin 50-Week MA Is Currently At $75,195
In a new post on X, analyst James Van Straten has shared a couple of important MAs related to Bitcoin. An “MA” is a technical analysis (TA) tool that calculates the average value of any given quantity and as its name implies, it moves in time along with the quantity and updates its value accordingly.
MAs can be taken over any window of time, whether that be just 10 minutes or 10 years. The main use of this indicator is for studying long-term trends, as it helps filter out any short-term deviations in the chart.
Here is the chart shared by the analyst, that shows the trend in the 50-week and 200-day MAs of the Bitcoin price over the past year:
As is visible in the above graph, the Bitcoin price has dropped below the 200-day MA after the recent market downturn, meaning that the asset’s value now is lower than the average for the last 200 days.
In TA, the 200-day MA is often looked at as a boundary line between bearish and bullish trends, with a breakdown of the level being considered a bad sign. Thus, it would appear that BTC has lost this important level with its latest plunge.
Another level that may divide macro trends, however, is the 50-week MA, which the cryptocurrency still remains above. “Below 50WMA is a bear market,” notes Van Straten. At present, the level is situated around $75,195.
If BTC’s current bearish trajectory continues, it’s possible that this line might be put to test. The analyst has pointed out, though, that the coin has dropped under the 200-day MA a few times before and managed to recover before breaking below the 50-week MA. It now remains to be seen whether a similar pattern would play out this time as well or not.
In some other news, the downwards trajectory of the market has meant that a leverage flush has occurred over on the derivatives side of the sector, as CryptoQuant author Axel Adler Jr has shared in an X post.
In the chart, the analyst has attached the data for the “Open Interest,” an indicator that measures the total amount of derivatives positions related to a given asset that are currently open on all centralized exchanges.
It would appear that the metric has plunged by $668 million for Bitcoin and $700 million for Ethereum.
BTC Price
Bitcoin has made some recovery during the last 24 hours as its price has jumped 7%, reaching the $83,000 level.
Featured image from Dall-E, CryptoQuant.com, Glassnode.com, chart from TradingView.com
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.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
