Bitcoin (BTC) tested $ 38,000 overnight as the weekend began with uncertainty among traders.
Hourly candlestick chart BTC / USD (bit stamp). Source: Trading View
A three-day chart can be “familiarized” with a weekly one.
Data from Cointelegraph Markets Pro and TradingView showed that the BTC / USD pair traded around $ 39,000 after several attempts to break through the $ 38,000 support.
The pair also saw a short-term rise above $ 40K on Friday due to geopolitical events, but this continued for several minutes before the previous situation returned.
Such “false outbursts” to higher levels, which ended with bitcoin coming into full circle and liquidating both short and long positions, were already common behavior for market participants this month.
Now, however, the lower time frames are beginning to show signs of a more significant downward trend on the horizon.
“BTC 3-day candle flirts with MA 200 for first time since Covid crash,” Material Indicators analysis source warned Twitter followers that day.
“If this is an introduction to what a weekly light will do, make sure you have enough powder to take advantage of your next purchase. This jump can change your life.”
The 200-week moving average, which currently stands at just over $ 20,000 and is still rising, has been a historically low zone throughout Bitcoin’s lifetime and has never been broken.
Weekly candlestick chart of BTC / USD (bit stamp) with 200MA. Source: Trading View
Achieving this will require a 50% drop from the current spot price and 70% from the all-time high, which BTC / USD has achieved in the past.
For example, the Covid crash resulted in a 60% drop in just a few days before an equally strong reversal triggered a new price pattern later in the year.
Bitcoin has been at the price of the stock markets for a week, while these stocks are moving towards the highest weekly losses of 2.9% and 3.5% for the S&P 500 and Nasdaq, respectively.
In the past, the prominent trader Pentoshi has made it clear that he believes the market could be swept away by a Wall Street-style event this year.
Big and small bitcoin games are flowing all the time
On the positive side, the purchase of whales and the smaller growth in the investor portfolio gave reasons to support long-term traders.
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As Cointelegraph reported, 30,000 bitcoins left Coinbase on Friday, as foreign exchange reserves mimicked the decline in July and September last year – just before the price of bitcoin soared.
Lex Moskovskiy, CEO of Moskovski Capital, added about wallets, citing data from network analytics firm Glassnode: “10-100 BTC wallets are accumulating like crazy, and the number is increasing parabolically.”
“These guys have rightly sold the meat from the $ 10,000 to the $ 50,000 Bitcoin movement.”
The attached chart showed that the percentage of bitcoin supply currently owned by devices – one or more wallets believed to be owned by the same owner – has now reached its highest level in a year.