A popular crypto analyst says Bitcoin (BTC) may need to move further below an important moving average (MA) before hitting its cycle bottom.
Pseudonymous trader Rekt Capital tells his 316,000 Twitter followers Bitcoin crossed its 200-week moving average for the first time since March 2020.
Explaining the historical patterns BTC follows after crossing this average, the analyst says,
“BTC tends to downside wick below this 200-week MA
In fact, in March 2020 BTC actually Weekly Candle Closed below the 200-week MA for the first time ever to perform a fake breakdown”
Source: Rekt Capital / TradingView
Explains the trader,
“BTC tends to downside wick -14% to -28% below the 200-week MA. So far, BTC has wicked -7% below the MA.
BTC may need to wick