One popular crypto analyst thinks Bitcoin (BTC) could be in for a rough couple of months before igniting new rallies.
In a new tweet, Kevin Svenson tells his 103,000 Twitter followers that Bitcoin was showing a bit of weakness at the point of its weekly close on Sunday, particularly because it had failed to break through its 50-week moving average.
#Bitcoin Weekly Close – 2-minute update
We are testing some long-term moving averages which is pointing to possible downside risk. pic.twitter.com/aFxKuILgEk
— Kevin Svenson (@KevinSvenson_) April 18, 2022
The trader also notes that BTC is threatening to break below its 20-month moving average and its 600-day simple moving average. Bitcoin hasn’t dropped below its 600-day moving average since the pandemic-related price dip in 2020.
Svenson says breaking below the 20-month moving average “usually spelled a multi-month dip to the bottom” in previous cycles.
“Even if we are going to be moving down here, we’re actually pretty close to the bottom, believe it or not. It’s not the end of the world if we do something like this. In 2014, it was four months. In 2018, it was two months below [the 20-month] moving average. So it could be anywhere from like two to five months of [heading] down, and then we just go sideways into the next halving. That’s what I think is most likely right now.”
Bitcoin is trading at $40,891.80 at time of writing, down more than 3% in the past seven days.
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