Bitcoin’s price went through a highly volatile and mostly painful ride throughout June, dumping to a multi-year low first at $59,000 before another one at $58,000.
Analysts continue to debate whether this cycle’s bottom has been reached or not, but Ali Martinez recently published a post on his views about the current accumulation zone and whether it’s a proper entry level.
History Says Yes
In the post specifically designated to bitcoin’s 200-week Simple Moving Average (SMA), the popular analyst noted that the asset has rarely traded below it for a longer period. And when it has dipped below it, the subsequent rally has shown that those moments “have consistently marked exceptional long-term accumulation opportunities.”
Since the 200-week SMA currently sits at $63,500, a level that BTC lost earlier this week, Martinez concluded that “This is exactly when you want to deploy a dollar-cost averaging strategy.”
In the more detailed post on BTC’s market structure, though, the analyst admitted that bitcoin trading below the 200-week SMA doesn’t necessarily mean it has bottomed out. In fact, he noted that the asset can still dip further south and outlined potential targets at $54,000 or even $40,000. If that’s the case, investors might want to double down on their DCA strategy, he argued.
“Spreading buy orders across the $58,000 to $40,000 range allows you to build a position while the asset trades at a technical discount.”
Martinez believes $63,500 remains BTC’s most significant level now, as if it registers a “high-timeframe reclaim of the 200-week SMA as macro support,” it would suggest the early stages of a new bull run.
When Bottom?
Each leg down opens the door for analysts to continue the always-hot debate over whether the bottom is in or if more pain lies ahead. Martinez brought up BTC’s historical performance after the aforementioned 200-week SMA came into play. Each of his four examples delivered massive gains after bitcoin tested that level in 2015, 2018, 2020, and 2022.
As such, he determined that the bottom is “almost in” and outlined the precise gains registered from bottom to top.
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August 2015: Bitcoin touched the 200-week SMA and launched a bull market, rallying over 8,500%.
- December 2018: A test of this moving average triggered a swift 267% recovery.
- March 2020: The COVID-induced liquidity flush saw Bitcoin validate the 200-week SMA as support before surging 1,125%.
- June 2022: For the first time ever, Bitcoin dipped and consolidated below the moving average until December 2022. Once the line was reclaimed, it initiated a 680% expansion.
The post Bitcoin’s Price Has Finally Entered the Buy Zone: Analyst Maps Out Big Targets appeared first on CryptoPotato.
The bottom might be just around the corner, said Martinez. Crypto Bits, Crypto News, Bitcoin (BTC) Price
This articles is written by : Nermeen Nabil Khear Abdelmalak
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