Bitcoin 200-Day Average Signals Waning Bullish Momentum, Here’s What It Means For BTC Price

By Investor Empires On Sep 6, 2024

This article is also available in Spanish.

The 200-day simple moving average (SMA), a key long-term price indicator for Bitcoin, appears to be losing upward momentum as the U.S. economy slows. Added Fewer jobs in August 2024.

Bitcoin must overcome the 200-day simple moving average to reverse the trend

The 200-day simple moving average is one of the most reliable long-term indicators for gauging the upcoming price action of an asset. The 200-day simple moving average for Bitcoin shows weak upward momentum, giving short-term traders little cause for joy.

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Notably, this is the first time since October 2023 that the 200-day SMA appears poised to enter bearish territory. Since late August, Bitcoin’s daily average price rise has not exceeded $50, while it has consistently recorded moves above $200 per day during the first half of 2024.

At the time of publishing, the 200-day simple moving average is at $63,840, which is about 13.96% higher than the current BTC price of $56,840.

It is worth noting that short-term moving average indicators such as the 50-day SMA and the 100-day SMA have already crossed their peaks and are heading lower. A bearish crossover was recently seen when the 100-day SMA fell below the 200-day SMA.

According to cryptocurrency analyst Ali Martinez, the stochastic relative strength index (RSI) has… pointed out Trend reversal from bullish to bearish on Bitcoin chart over 2 months. If we look at historical data, such a move usually leads to a significant correction of up to 75.50%.

In addition, Google Trends Offers Searches for the term “bitcoin” have hit their lowest levels since October 2023, when the price of bitcoin was hovering around $30,000.

Adding to the general bearish sentiment surrounding the leading digital asset, former BitMEX CEO Arthur Hayes announced It was published. On X he is currently short selling Bitcoin and can see the crypto asset It is shattering to below $50,000 over the weekend.

In contrast, other market experts express his opinion Bitcoin is expected to bottom out at $55,000 before an influx of US liquidity helps reignite much-lost buying pressure in the crypto markets.

Bitcoin fundamentals remain intact

Although many cryptocurrency analysts appear to be bearish on Bitcoin price movements in the short term, the long-term bull case for the leading digital asset remains unchanged.

Cryptocurrency Analyst Crypto Jelle Positions Bitcoin’s tepid price action over the summer is expected to come to an end by early October before it can resume another bull run.