We know that Bitcoin held the key level on the 200-week moving average, which we discussed a few weeks ago.
From a technical analysis point of view, a 200-week moving average is a very important level, which often signals
It is important to understand whether this level is a bottom for Bitcoin in the long run. Personally, I doubt it, it seems to me to talk about it too early. An even more important question is how long Bitcoin can hold this level. Earlier, January was characterized by high volatility of Bitcoin, and in order to forecast future developments, we need to monitor the price until February of next year.
Thus, if the price stays above the moving average 200 weeks before the beginning and middle of February 2019, then Bitcoin has chances of forming a long-term bottom. However, while I am not ready to state this for a number of reasons. First of all, the markets do not form the bottom in the shape of the letter “V”, so the price will go to the retest of the moving average, and then we will have a clearer understanding of the situation. Secondly, some buyers without a long-term strategy are trapped, and they will be happy to sell Bitcoin when it grows to $ 5,000- $ 5,500. Third, bears with more capital can start opening short positions on the rise in Bitcoin prices