Bitcoin’s Steep Price Discount Seems Similar to March 2020 Bottom
- Date: 11-Jun-2021
- Source: Yahoo News
- Sector:Technology
- Country:Middle East
Bitcoin’s Steep Price Discount Seems Similar to March 2020 Bottom
Bitcoin traded at a significant discount to its long-term moving average earlier this week, implying an overstretched bearish move and potential for reversal higher.
The cryptocurrency dropped to nearly $30,000 on Tuesday, pushing the ratio to its 20-week simple moving average (SMA) down to 0.61, the lowest since the March 2020 crash.
Historically, bitcoin has carved out major price bottoms with the ratio near 0.60.