A widely followed crypto analyst is looking at the movement of Bitcoin (BTC) over a nearly two-year time frame to plot out where it might be headed next.
In a new tweet, Kevin Svenson tells his 103,100 Twitter followers that Bitcoin appears to be sitting at a crossroads when viewing its simple moving average (SMA) over the past 600 days.
He also provides a Bitcoin chart tracking a series of higher lows dating back to the beginning of this year.
“Bitcoin’s 600 day SMA is proving to be very important. We have not closed a daily candle below this MA since the 2020 COVID crash.
We are interacting with a lot of long-term MAs right now.
We’re at a crossroads for the long term. Continued bull cycle or a cool-off period?”
The trader next charts Bitcoin’s 200-day simple moving average broken down into 3-day candles. If BTC stays above the average, Svenson believes Bitcoin’s bullish proposition remains intact.
“BTC’s price has caught up with the 200/SMA on the 3-day chart.
It’s very straightforward. It’s a long-term MA, giving it more significance on the macro-scale.
Above it means the bullish MACRO thesis is intact. Below it may put us in a 2018-style position. We’re still above it.”
The analyst concludes his analysis by saying that despite the many predictions of Bitcoin’s imminent rise or demise, he thinks future price action will most likely be influenced by whether stock prices change dramatically.
“For 3 months everyone has been trying to call the next big pump/dump for Bitcoin but all we did was remain sideways/neutral.
Could stay neutral like this for a while unless the stock market does something significant.”
At time of writing, Bitcoin is up 1.3% on the day, trading for $41,441.
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