- For only the third time in its history, BTC broke below the weekly and daily 200-day SMA lines.
- Additionally, BTC’s 9-day EMA line crossed below the 50-day EMA line over the past week.
- The price of BTC was able to climb by 0.07% over the past 24 hours, which left it trading hands at $26,057.71.
For only the third time in the history of Bitcoin (BTC), a significant event has occurred as it broke below both the weekly and daily 200-day Simple Moving Averages (SMA), according to a tweet shared by cryptocurrency analyst Miles Deutsher yesterday. It is also the first time this has happened since the LUNA/3AC collapse.
This is the first time since the LUNA/3AC collapse that #Bitcoin has broken below both the weekly + daily 200-day SMA.And only the 3rd time in $BTC's history.Last time, it was fuelled by an unprecedented liquidation cascade. This time, it only took a general market sell-off. pic.twitter.com/TqObcoiOBo— Miles Deutscher (@milesdeutscher) August 22, 2023
It is worth taking note that in this instance, unlike the previous occurrence which was driven by an unprecedented liquidation cascade, the breach was brought about by a more generalized market-wide sell-off. This may be because of the extremely low levels of liquidity in the cryptocurrency market at the moment.
Daily chart for BTC/USDT (Source: TradingView)
From a short-term technical perspective, the 9-day EMA line crossed below the 50-day EMA line over the past week. This may suggest that sellers will have the upper hand on BTC’s charts for the next 2 weeks.
Furthermore, the 20-day EMA line was attempting to cross below the 50-day EMA line. Should these technical indicators cross, it will signal that BTC’s price has entered into a medium-term negative cycle as well. If this technical flag is validated, BTC’s price will be at risk of testing the next key support level at $25,195 before potentially dropping to $23,815.
On the other hand, if bulls identify BTC’s current price as a buy opportunity, then the market leader may flip the $27,000 resistance into support in the coming week. Thereafter, BTC will have a relatively clear path to climb to the next significant threshold at $29,600 in the following 2 weeks.
Regarding BTC’s performance within the last 24 hours, as reported by CoinMarketCap, the leading cryptocurrency demonstrated a marginal increase of 0.07% in its price during this period. Consequently, the value of BTC stood at around $26,057.71 at press time.
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