A popular crypto analyst and trader is unveiling what the leading digital asset Bitcoin (BTC) needs to do to regain a key support level.
The pseudonymous analyst Rekt Capital tells his 328,000 Twitter followers that the top crypto asset by market cap lost its 200-week moving average weeks ago but has yet to flip it into resistance.
The trader says that if the king crypto could hold the area around $19,500, it could once again revisit its 200-week moving average.
“BTC is struggling near the ~$19,170 support. But what’s interesting is that BTC is at a subtle higher low compared to late June lows. BTC lost the 200-week moving average weeks ago but hasn’t flipped it to new resistance. If green support holds, BTC could revisit the 200-week moving average.”
Rekt Capital then notes how Bitcoin’s buy volume now is similar to what it was weeks ago. However, the trader says BTC’s price has been impacted less by the buying despite the token costing less.
“This week’s BTC buy volume is similar to [the] buy volume of a few weeks ago. However, weeks ago, [a] similar volume produced a +10% move, at higher prices. This week, similar buy volume has produced a small +4% reaction, at lower prices, and most of it has retraced.”
Recently, the analyst also outlined how Bitcoin was fast approaching its bear market bottom. He said that BTC tends to bottom out a year after its previous bull market peak. It’s been about 300 days since Bitcoin hit its last bull market peak, according to the trader.
BTC is trading for $19,950 at time of writing, a fractional gain on the day.
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Featured Image: Shutterstock/Mirexon/Nikelser Kate
