Rocket

Bitcoin

Rekt

<p>In a detailed analysis shared in May 2022, crypto market researcher Rekt Capital discussed the price movements of Bitcoin and the role played by the 200-week moving average (MA) in determining accumulation zones. This article expands and updates that analysis, diving deeper into the long-standing relationship between Bitcoin’s 200-week MA and its price history.</p> 
<h2 class="wp-block-heading" id="the-historical-role-of-200-week-ma">The Historical Role of 200-week MA</h2> 
<p>Traditionally, Bitcoin’s 200-week MA has served as a crucial pivot point for investors looking for long-term opportunities. Acting as an empirical floor for Bitcoin’s price, this MA has historically been a reliable indicator for identifying when the asset has bottomed out.</p> 
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<p>In March 2020, amid the global market meltdown, Bitcoin’s price did wick below the 200-week MA briefly. However, the price remained largely above this MA, affirming its support role.</p> 
<h2 class="wp-block-heading" id="a-shift-in-dynamics-the-accumulation-area">A Shift in Dynamics: The Accumulation Area</h2> 
<p>However, recent market behavior has showcased a change in this long-standing principle. For the first time, Bitcoin’s price found its bear market bottom within an Accumulation Area—essentially a price zone where long-term investors amass or “accumulate” an asset—which was below the 200-week MA.</p> 
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<p>This Accumulation Area was not derived arbitrarily; it was established by examining Bitcoin’s historical drawdowns that occurred following so-called “Death Crosses,” events in which a short-term MA crosses below a long-term MA, often signaling a bear market.</p> 
<h2 class="wp-block-heading" id="role-reversal-200-week-ma-as-a-reference-point">Role Reversal: 200-week MA as a Reference Point</h2> 
<p>In earlier cycles, the 200-week MA helped form the Accumulation Range, providing an essential benchmark for traders and analysts. It acted as a reference point for a Bitcoin breakout from this zone. Yet, time marches on, and the 200-week MA, being a dynamic indicator, now represents a higher price point.</p> 
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<p>Interestingly, Bitcoin has recently flipped the 200-week MA into a new resistance level, hinting at the possibility that its price could linger below this MA in the short to medium term.</p> 
<h2 class="wp-block-heading" id="timeless-principle-high-roi-potential-below-200-week-ma">Timeless Principle: High ROI Potential Below 200-week MA</h2> 
<p>Despite these shifts, the underlying principle seems unaltered: purchasing Bitcoin below the 200-week MA has historically yielded a high Return on Investment (ROI). Even as the MA transitions from being a point of support to potentially a new point of resistance, it continues to offer an advantageous buying opportunity for long-term investors.</p> 
<p>In summary, while the 200-week MA’s role may have evolved, its status as a significant indicator for savvy, long-term Bitcoin investment strategies remains indisputable. The moving average continues to be a point of focus, even as Bitcoin charts a course through ever-shifting market conditions.</p> 
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<p>The post <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com/analyst-says-if-history-repeats-bitcoin-price-will-rocket-after-hitting-this-exact-target/">Analyst Says If History Repeats, Bitcoin Price Will Rocket After Hitting This Exact Target</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com">CaptainAltcoin</a>.</p>

Analyst Says If History Repeats, Bitcoin Price Will Rocket After Hitting This Exact Target

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