As you may have noticed, in our analysis we very often use the simplest indicator of technical analysis - moving averages.
This indicator has been used for over 70 years and is still one of the best indicators on the market.
The logic of this indicator is to average price values over a certain period.
For example, the moving average MA20d shows the average price of an asset over the last 20 day candles.
💰 On Bitcoin, during periods of a bullish trend, the moving MA20d acts as a serious support for the price.
You can look at the graph below and see for yourself.
If the price during a bullish trend on the daily timeframe falls below this moving average and closes the daily candle below it, then we can state that a market correction has begun.
The same rule applies during a bearish price trend.
Therefore, a full-fledged correction in the market will begin exactly when the price of Bitcoin falls below this moving average, which has not happened for 3 months.
At the moment, this moving average is in the area of $44,000 and a fall under this zone will trigger a domino effect with the liquidation of longs with shoulders.
🛡 Yes, there are now enough alts on the market that, according to all the rules of technical analysis, have already rolled back well and are attractive for purchases.
However, given the huge number of facts indicating the imminent start of a correction, trading without stops now is simply stupid.
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