Everyone has been crabby and bearish since the eve of 2022, hitting an all-time low of extreme fears in June. Bitcoin skeptics said the cryptocurrency will die at a flatline of $0. However, with the power of technical analysis and backtested indicators, BTC and the rest of the altcoin market could rise again.
This article is not meant to be financial advice.
A Massive Buy on the 200-day Moving Average
While the paper-handed individuals screamed Bitcoin was dead, the media broadcasted terrible news, and critics smugged on the collapse from $69,000 to $17,700 in just eight months, buyers are looking into these as opportunities. Some people go YOLO into Bitcoin. Others want to play it smart. Alas, the 200-day MA on the 1-week timeframe makes the perfect chance for a buy-in.
Crypto analyst Rekt Capital tweeted a thread on BTC touching the 200-day MA on the 1W timeline. He analyzed that the pullbacks of BTC on the 1W time show extreme fears from holders while traders buy into these fears. If you look at it, the indicator does work. It has already happened multiple times since 2015 until the pullback in 2019 and 2020. When the price hit the 200-day MA on 1W, the market reversed again into a bullish frenzy.
Buying the Fear
December 2020 marked the last time BTC went under $24K. After that, the support level became $21,900, rallied to $41K, and tested at the $50K zone.
Altcoin Sherpa’s tweeted analysis shows that the current $20K zone already has a strong support level. However, if it does fail in that area, BTC may exhaust around the $16K – $19K zone – which BTC is currently floating at the time of this writing.
Finally, the Market-Value-to-Realized-Value (MVRV) indicates that it’s the best time to accumulate on Bitcoin and other altcoins you like.
All is Still Uncertain
While this may seem like positive news for the crypto community inhaling hopium, Bitcoin could still go sideways and down under. Based on backtesting from the analyses I’ve mentioned above, the best is yet to come for anyone ready to buy low and sell high.