Exactly a month ago, we wrote about how Bitcoin (BTCUSD) was heading towards its long term wick support line, the 276-week SMA, under $18k:
That moving average line did a great job in holding the cryptocurrency’s downturn weight. In other words, buyers were waiting around this price point and started buying the coin up:
The lowest price point for BTCUSD was 1.54% below the 276-week simple moving average line.
That percentage is negligible considering that Bitcoin is traded in hundreds of cryptocurrency exchanges worldwide; arbitrage profit opportunities can’t be ignored.
Still, if you look for a best respected moving average wick support line that does not allow quick or minimal piercing, then it is now the 281-week SMA:
In light of the above, have we just witnessed Bitcoin’s lowest price point in this environment? Is this support area going to hold or break?
No one knows, no one can predict. However, what we can see is that the long term wick support line managed to hold Bitcoin for now and it will certainly be a price area to watch next.