Bitcoin’s recent downturn has led to levels not seen before, dropping significantly below its 200-day simple moving average (SMA). This has sparked conversation about the likelihood of a price recovery.
Key Highlights:
- Bitcoin has never been so low compared to its 200-day moving average, according to data.
- Analysts expect a making up for the drop due to mean reversion.
- Currently, a massive macro-driven bear market is unfolding.
Bitcoin Experiences Swift Price Decline
New insights from Martin Leinweber, at MarketVector Indexes, affirm the long-term investment rationale for Bitcoin remains strong. He notes that BTC has never dipped this low beneath its 200-day SMA, especially below $60,000.
“Bitcoin is -2.88σ below its 200-day moving average. In 10 years of data, this has literally NEVER happened before. Not during COVID. Not during FTX. Never.”
“Translation: استنادًا لبيانات جديدة، فإن البيتكوين لم يتداول أبدًا بهذه البعد عن المتوسط المتحرك لمدة 200 يوم.”
Bitcoin’s price drop of over 22% within a week now ranks among its most severe declines, worse than nearly all its previous records.
Despite recent lows, Leinweber expresses caution about predicting a long-term bottom for Bitcoin, suggesting the current situation may merely be a local minimum.
Patience Required for Bitcoin Investors
Analysts highlight the record nature of Bitcoin’s price declines, emphasizing the extreme sentiment reflected in market indicators.
Bitcoin’s recent actions have drawn attention from large investors once again, indicating a potential opportunity for those able to wait out the volatility.
“Great time if you are more cash heavy and have the patience to accumulate or profit from the volatility.”
“Translation: وقت رائع إذا كنت أكثر ثراءً من حيث النقد ولديك الصبر لزيادة أو الربح من التقلبات.”
