With the recent price volatility, we got a request to look at Bitcoin and find the best respected MAs.
Let’s start with the weekly chart:
The long term (bars/candles) body support is provided by the respected 202 week EMA line and goes back to 2017. In the chart above we can see BTCUSD respects the line during the 2018-2019 lows, as well as in March 2020. As far as the (bars/candles) wick support, the respected line is 276 week SMA.
To look at the respected resistance lines, let’s zoom in:
We can see the turning point was on the week started on November 22nd, 2021. BTCUSD respects the 7 and 8 week SMAs as the body and wick resistance lines, respectively.
Turning to the daily chart to zoom even further in, we can see that on November 17th, 2021 BTCUSD started respecting the 31 day EMA (body) and 40 day SMA (wick).
Breaking these MA lines will be one of the ingredients in Bitcoin’s price reversal, when it comes.
An aggressive view will say this: Bitcoin builds a bear flag on the daily and will flush down to below 30k, while taking out all the stops placed at/below the mid 2021 lows. Buyers will step in around the 202 weekly EMA, wherever it will be.