Bitcoin (BTC), which may not yet enter the $20,000 area, could be reentered in the near future, according to a new report. However, the next weeks could offer solid buying opportunities, the report predicts.
Decentrader, a trading platform, provided the latest market update on February 24, detailing the last areas of support for Bitcoin between the current spot price and $20,000.
Nalyst looks at BTC’s 20 and 200-week MAs for cues
Markets are in turmoil Thursday due to Russia’s military action in Ukraine. Stocks and crypto fell as uncertainty gripped Asia, Europe, and the United States.
Bitcoin has lost 12% in less than 24 hours. However, the worst isn’t over. Reactions to Russia’s offensive continue to flood in, as well as potential financial sanctions.
Decentrader is, as many analysts, very cautious when it comes to trading decisions.
It pays to be clear about your strategy during times of uncertainty like these. Analyst Philip Swift stated that traders will be able to survive if they have clear invalidation levels and strong risk-management.
“For investors who are looking for long-term investment, we are near historic major support levels. Anywhere in this region is likely be a good spot to dollar-cost average over the next weeks.”
Although bulls have never been threatened by previous bear markets, Bitcoin’s 200-week moving mean (WMA) is a clear line of sight for bulls. It currently sits at $20,000 and rising.
Swift believes that a dip below $30,000 is more likely than deviations below 20-week moving mean, which Swift said was what characterized the March 2020 COVID-19 pit.
The update stated that “Should the price continue to fall, the 20WMA Deviation Bands highlight a zone where Bitcoin could receive support between $29,382 – $25,253”.
“Prices have never strayed so far from the 20WMA since the March 2020 covid crash. However, we were very close during the summer 2021 crash.”
BTC/USD chart showing support level. Source: Decentrader
Although it is difficult to visualize, there are upside targets for Bitcoin’s fortunes in the event of a turn. These include $37,500 or $41,100.
Gold booms as Bitcoiners look on
Decentrader is not the only one who advises traders to not let their emotions take over in current circumstances.
Related: A sub $30K Bitcoin price drop would require panic “to a large extent”
Crypto Chase, a popular Twitter account, also called for calm action and argued that long-term strategies can be maintained.
“It is most likely that there will be volatile headline-driven events in the days ahead. Many would be better off staying flat, including myself. But time will tell. This is a typical trade, but it can be volatile at times. Caution advised,” he said in his most recent update.
1-hour candle chart for XAU/USD Source: TradingView
While the battle for digital gold continues, XAU/USD hit $1,970 while BTC/USD barely recovered from its overnight lows at $34,300.
Eileen Wilson –Technology and Energy
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