Bitcoin’s price has been wandering around its strong support area for 17 weeks now.
Originally we spotted the cryptocurrency’s best respected wick support line as the 276-week SMA. That was back in January 2022, and BTCUSD traded around $38k.
Since then, BTCUSD came all the way down to the 276-week SMA support line, 17 weeks ago. During that journey it had to spend 5 weeks to overcome its best respected body support line, which was then the 202-week EMA. Once BTCUSD drilled through the body support line, it met the wick support line within the same week.
The 276-week SMA was a much stronger support line. It stopped Bitcoin’s downfall and defined the support area, which is still holding for the last 17 weeks (to date).
Here’s Bitcoin’s weekly chart, overlaid with the ‘original’ best respected moving average support lines, which were spotted in January 2022:
This is Bitcoin’s weekly chart, overlaid with the its current best respected moving average support lines:
While the support area is well respected (for now), we cannot ignore the best respected resistance lines that are closing in. These are the 24-week SMA body resistance line and the 25-week SMA wick resistance line.
BTCUSD is trading along the support lines, however, if it stays the course then the meeting with the resistance lines is inevitable. Either the support or the resistance areas will get broken.
And we’ll be here to watch what happens.