Bitcoin’s Steep Price Discount Seems Similar to March 2020 Bottom

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.