Here’s Why Bitcoin Might Never Go Below $38,000

by

As a seasoned crypto investor with a knack for spotting trends and understanding market dynamics, I find myself intrigued by the current Bitcoin situation. Having witnessed the rollercoaster ride that is the cryptocurrency market, I must admit that the 200-week moving average being above $38,000 is a sight that warrants attention. This MA has been an unyielding support for Bitcoin throughout its journey, and it’s not often we get such a clear signal like this.

Individuals who are eager to purchase Bitcoin for less than $38,000 may not find such a favorable buying chance again.

According to Adam Back, the CEO of Blockstream, Bitcoin’s 200-day moving average (200DMA) has risen above its current point.

In many analyses, the 200-day moving average (200MA) is considered a crucial chart for Bitcoin because, so far, Bitcoin has never experienced a decline below this average line.

This ironclad MA is considered to be some sort of a price floor for Bitcoin. 

Currently, the top cryptocurrency is valued at approximately $60,774 on Binance. On August 5th, there was a significant drop in its value due to a worldwide market downturn, reaching as low as $49,000. Yet, it remarkably recovered much of its loss within a brief period.

Despite a strong surge in optimism, the fact that the bulls haven’t seized control again might be a concerning indication, suggests well-known trader Mark Dow.

The leading digital currency has dropped by approximately 17.5% since reaching a high of $73,737 in March, an achievement coinciding with the highly successful launch of numerous exchange-traded funds.

 

Currently, the continued Mt. Gox repayments are exerting some potential selling pressure that could negatively impact the market. This week alone, the defunct exchange moved a large amount of funds to Bitstamp, which is another factor contributing to bearish sentiment.

In early August, financial heavyweight JPMorgan expressed that they didn’t see any immediate positive factors driving the leading cryptocurrency upwards. As a result, they suggested approaching the current upturn with care.

Read More

2024-08-22 10:13