A new report predicts that Bitcoin (BTC) may enter the $ 20,000 range again, but the coming weeks may offer a good buying opportunity.
In its latest market update on February 24, the trading platform Decentrader has identified definitive support areas between Bitcoin’s current spot price and $ 20,000.
Analysts look at 20-week and 200-week BTC moving averages for signals
Russia’s military actions in Ukraine sent markets lower on Thursday as equities and cryptocurrencies follow a strong downward trend while uncertainty sweeps over Asia, Europe and the United States.
Bitcoin has already lost 12% in less than 24 hours and the worst is not over yet – the reaction to the Russian attack continues, along with possible economic sanctions.
Therefore, Decentrader, like many other analysts, is particularly cautious in all trading decisions.
“In times of uncertainty like these, it pays to be very clear on your strategy. For traders, having clear reversal levels and good risk management will keep you alive, “said analyst Philip Swift.
“For long-term investors, we are approaching historic key support levels, and any location in this region is likely to be a good place for the average value of the dollar in the coming weeks.”
While they have never been threatened in previous bear markets, the absolute bullish sandbar is emerging in the form of Bitcoin’s 200-week moving average (WMA), which is currently $ 20,000 and rising.
Swift believes that the fall below $ 30,000 is most likely due to deviations from the 20-week moving average that marked the collapse of COVID-19 in March 2020.
The update explains: “If the price decline continues, the 20WMA divergence areas indicate a potential support area for Bitcoin between $ 29,382 and $ 25,253.”
“The last time the price deviated from the 20WMA was during the coronavirus crash in March 2020, although we were also very close to the summer of 2021 crash.”
The BTC / USD chart shows support levels. Source: Decentrader
She added that although difficult to imagine, the growth targets in the event of a change in bitcoin fortunes are $ 37,500 and $ 41,100.
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Decentrader is not the only one who advises traders not to let emotions subside in the current circumstances.
RELATED: Bitcoin selling under $ 30,000 requires “very big” panic
Similarly, the popular Twitter account Crypto Chase called for tough action, arguing that there is no need to abandon long-term strategies.
“It will probably be two days with changing headlines. Most of them (probably including myself) will probably do better, but time will tell. Typical deal, but turbulent times. We advise you to be careful “, he wrote in his latest update.