Oops!Something went wrong.Please try again later.Omkar GodboleJune 11, 2021, 3:47 AM·2 min readOops!Something went wrong.Please try again later.
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.
Related: Bitcoin Holds Short-Term Support; Faces Resistance at $40K
“Our graphic depicts bitcoin at the steepest discount to its 20-week moving average since the March 2020 bottom around $4,000,” Bloomberg’s Mike McGlone said in a research note published on June 9. “A more enduring discount at the end of 2018 marked the low closer to $3,000.”
If past data is a guide, Tuesday’s low near $30,000 could also turn out to be a bear-market bottom. Bitcoin has bounced up slightly over the past...read more...