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29 Aug 2022
Where will bitcoin find support?
Bitcoin is trending downwards again and touched levels below $20,000 last week for the first time in over a month. Where is the next support level?
With fear hitting the stock market again, bitcoin lost the $20,700 support level we highlighted last week and continued down to ~$19,500.
This week, we’re zooming out again to look at some key technical levels where bitcoin might find support.Source: Tradingview (BraveNewCoin Index)
BTC is now trading below its 200-week moving average (200WMA). This is not a common observation and buying below this well-known technical indicator has historically been a profitable strategy. However, it’s noteworthy that bitcoin has traded below the 200WMA for almost two months. We haven’t seen this before, and it can look like the important indicator has been flipped to resistance. This is undoubtedly a bearish technical signal.
The next major support levels on a weekly scale could be around $16,000 or even down between $11,000-$12,000.
However, on the bright side, bitcoin is still trading above its 2017 peak, and it looks like the 2017 top is now acting as a solid support level.
So, where is the next support level? With the stock market clearly leading the way for bitcoin and other cryptocurrencies this year, it’s dangerous to only consider technical levels when evaluating the bitcoin price.