Will Bitcoin Bounce

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Will Bitcoin Bounce

Will Bitcoin (BTC) Bounce Back?

Bitcoin has been sliding down for several consecutive months since the start of 2022. In fact, it has already broken the dynamic support at the 200 SMA (weekly) around the $22,600 price level. In fact, the 200 SMA (daily) was also pierced around the $35,500 price level.

With BTC already trading below the 200 SMA on daily and weekly timeframes, is there any hope of a bounce back for the digital asset? Right now, it seems difficult to forecast what's ahead for Bitcoin!

Its been almost a month since the BTC has been trading close to the 200 SMA (weekly). According to experts, their research suggests that BTC is gearing up for an upside move. But when that happens, they can't say with certainty.

3 to 6 Months of BTC Accumulation Phase

Historically speaking, the accumulation phase close to the 200 SMA (weekly) usually lasts for 3 to 6 months. After that duration has passed, we see a move towards the upside.

If we look at the period between 2018 to 2019, BTC also spent close to 3 months tinkering with the 200 SMA (weekly). But the worst-case scenario may see the BTC not staging any bullish run for 1 year or so.

If the term 'SMA' confuses you, it is an abbreviation for the simple moving average. Traders use these technical traders to find the average price of an asset over a specified period of time. These dynamic lines can also serve as important support & resistance levels. Furthermore, they also signify the dominant trend in the crypto market.

But we also need to know that any analysis based on historical price patterns is a guess at best. No one can say that it is exact science or that a move down/up will happen with 100% certainty.

For now, the fate of the BTC remains stuck between the bulls and bears. But when we look at how BTC always staged a comeback in the past, it does seem probable that we may see a move up very soon!

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