Bitcoin 2 mins

Make or Break: Bitcoin Price Closing In On Key Monthly Support Level

Avatar Nick Chong 2 weeks ago

The recent plunge in the crypto markets has pushed Bitcoin (BTC) to a “make or break” point — the 21-month simple moving average, which sits in the high-$6,000s at current.

As analyst Byzantine General recently pointed out in a recent tweet, this level has been the point at which BTC has bounced in two previous bull market retracements. Of course, the sample size of bull markets is small, though the chart below shows that the 21-month moving average has been a significant level for BTC to hold above.

Bitcoin to Remain in Long-Term Bull Market, Analyses Show

A confluence of analysis and research suggests that Bitcoin will hold the level, and thus continue its secular bull market.

David Martin, the CIO of Blockforce Capital, recently shared some of a report from Delphi Digital, in which the research boutique says that “[although] short-term sentiment gauges have rolled over, the longer-term uptrend still remains intact.”

There is evidence, and a fair bit of it to boot, to support this.

Per previous reports from NewsBTC, the monumental surge of volumes seen last June, which marked an all-time high, is indicative of a long-term bull trend forming. Digital asset manager Charles Edwards noted in a Twitter thread that fresh all-time highs in volumes were followed by consolidation, just like we’re seeing now, then “huge rallies”; the growth in volume leading to long-term exponential bull markets that brought Bitcoin to orders of magnitudes higher than it was before the surge.

Also, the one-week Ichimoku Cloud for Bitcoin recently printed a very bullish signal: the Kumo line flipped from red to green, implying a long-term bull trend has formed. An analyst remarked that “BTC has NEVER failed the Kumo breakout in its entire history on the weekly.”

Related Reading: Bitcoin Fixes This: Top Bank Chief Says Monetary Policy is Failing

That’s not to mention that the macro narrative is supporting the cryptocurrency market, or rather, the need for a new form of money in general; legendary hedge fund manager Ray Dalio has just confirmed that he thinks that there will be a “paradigm shift” in the economy, as the capitalistic machine just isn’t working for everyone anymore. Dalio, in fact, said that he thinks the “world is broken.” The Wall Street legend did not mention Bitcoin, though many took his rhetoric as a positive sign for a new form of money, a new economy.

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