Bitcoin Could Retest $20,500 Level, Analyst Suggests
Key Points:
– Bitcoin has dropped below the 200-day SMA with the recent crash.
– The analyst’s chart shows that when Bitcoin’s price crosses below this level, it often retests the realized price.
– The realized price refers to the cost basis or buying price of the average investor.
– The 200-day SMA has historically acted as support during bullish periods and resistance during bearish periods.
– If Bitcoin retests the realized price at $20,500, it could find a rebound, but a retest failure would be concerning.
Hot Take:
With Bitcoin dropping below the 200-day SMA, there is a possibility that it may retest the realized price at $20,500. This level has historically had a significant impact on Bitcoin’s price movement. If the retest occurs and Bitcoin finds a rebound, it could signal a positive trend. However, a retest failure would be worrying and may indicate a return to the bear market. It will be interesting to see how Bitcoin’s price develops in the coming days.
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