Bitcoin Drops Below 200-Day SMA, Has Two Price Potential
Bitcoin (BTC) has gained almost 300% since 2023. The crypto market leader rose 40% in 2024, hitting a record $73,750 in March. Recent price movements suggest Bitcoin's increasing price trend may shift in the coming months.
200-Day SMA Marks Bitcoin Price Crossroads
On Saturday, famous crypto analyst Ali Martinez wrote on X that BTC's price has dropped below its 200-day simple moving average (SMA), suggesting a price shift.
For example, the simple moving average, a popular trading technique, identifies price patterns over 200 days. The indicator shows the average of all price points in a certain time, helping traders predict market direction.
When an asset's price crosses over the SMA, it usually signals a price increase, but the SMA's time period determines the predicted rise. Alternatively, a token's price below the SMA indicates a sell signal since it is projected to fall.
Martinez believes BTC's drop below its 200-day SMA is transitory and offers investors a purchasing opportunity, supporting the token's upward trajectory. However, if Bitcoin stays below the 200-day SMA longer, the analyst anticipates a bear market for the top cryptocurrency.
BTC is now at $59,995, down 1.77% in the last week, according to CoinMarketCap. This shows the asset's struggle in the previous month, when it lost nearly 8% of its value and fell below $50,000. However, Bitcoin community opinion remains high, suggesting that many investors believe the token will be successful.
The leading cryptocurrency has been predicted to reach six-figure values based on historical price data, the Bitcoin spot ETF market, and future US government policy changes on digital assets. Crypto market leader Bitcoin faces substantial resistance between $62,000 and $70,000, its short-term price goals.
