Charts indicate that Bitcoin’s price is falling below its 600-day moving median, which may be a bearish sign for crypto.
Bitcoin begins to lose 600-day MA support line as price crashes below $39k again
An analyst pointed out in CryptoQuant that the price of crypto has fallen below the 600-day MA curve. This line was once a support level for Bitcoin in the past.
A “moving average” (or MA in short) is an analytical tool that takes the average of any quantity over a particular time period. This average is constantly updated as new data arrives, just like its name.
This tool removes short-term fluctuations (which in this case is Bitcoin prices) and smooths the curve.
This makes moving averages quite useful for studying long-term trends, where local variations aren’t that important.
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MAs may be used in any range of time, from two days to two hundred days or as little as two minutes.
Here’s a chart showing the trends in Bitcoin prices over 600 days MA.
It looks like the price curve has fallen below the 600-day MA now. Source: CryptoQuant| Source: CryptoQuant
As you can see in the above graph, the Bitcoin 600-day MA curve has acted as support for the coin’s price many times in the year so far already.
However, it seems that the trend is changing as the price line crossing below the MA daily timeframe suggests that this support is no longer in place.
Similar reading: Time Vs. price: Why was this Bitcoin correction the most painful yet| Time Vs Price: Why This Bitcoin Correction Was The Most Painful Yet
The breakdown might not yet be confirmed. According to the quant, Bitcoin could use this level as a launch pad to move higher if it fails.
If the collapse does occur, then the outcome could be bearish for cryptocurrency.
BTC Prices
At the time of writing, Bitcoin’s price floats around $38.8k, down 1% in the last seven days. The crypto’s value has fallen 12% over the last month.
Below chart displays the trends in the value of the coin during the last five working days.
It looks like the cryptocurrency's price has fallen in the past few days. Source: BTCUSD at TradingView| Source: BTCUSD on TradingView
Bitcoin seemed briefly to be in recovery when the price of the coin broke the $42k mark a few days earlier.
The crypto currency seems to now be in a downward spiral, with it retracing its previous sub-39k levels.
Unsplash.com featured image, Charts from TradingView.com and CryptoQuant.com charts
