When the crypto market crashed last month due to the Terra fallout, many predicted a steep fall in Bitcoin’s price. As the price was hovering around the $30,000 mark, speculation was rife that it would further fall to $20,000 level. This week, the Bitcoin weekly average is in question.
Until last week, Bitcoin maintained the $30,000 price level only to slide to under $22,000 this week. The all important $30,000 price range was breached, bringing talk of the next support level.
Bitcoin Weekly Average To Be Broken?
As of writing, BTC is trading at $21,035 down around 1% in the last 24 hours, according to CoinMarketCap. Incidentally, this price is below Bitcoin’s 200-week moving average of around $21,700, a behavior observed only five times previously.
Trading charts reveal that Bitcoin had touched the 200-week average only on two other occasions in the last three years. In December 2018, Bitcoin touched the average mark when it was trading just above the $3,000 level. Most recently in March 2020, BTC intercepted the 200-weekly average at around $5,450.
Will This Mark The Price Bottom?
The previous instance of matching the key indicator marked the bottoming of Bitcoin’s price. More importantly, the price correction after touching the 200-weekly average happened almost instantly on those occasions. It remains to be seen how Bitcoin would fare by the end of this week.
