Bitcoin Is Struggling To Hold Its 200-Day MA

Despite the traditional stock market view on 200-day moving averages, a dip below it could mean a sale event for Bitcoin.

Bitcoin has been trading at sideways price action for most of December, struggling to stay above the 200-day moving average.

After a strong October and an early November of new all-time highs, Bitcoin has encountered a blocking road in December, having lost 13.60% since the beginning of the month. This reality stands in stark contrast to a widespread belief that Bitcoin’s price would hit $100,000 by the end of the year.

At the time of writing, Bitcoin is trading at around $47,500 after having closed below its 200-day moving average on Tuesday. The 200-day MA is often used to gauge an asset’s long-term trend in traditional capital markets. An asset is generally considered to be in an overall uptrend for as long as it holds above its 200-day MA.

Bitcoin closed below its 200-day moving average yesterday. Source: TradingView.

In March 2020, Bitcoin violently broke below its 200-day MA as the pandemic outbreak spread fear throughout the world, including capital markets. It took BTC about two months to get back above the moving average, triggering a stellar bull market that would extend past the end of the year. Bitcoin held above its 200-day MA for over a year until China banned bitcoin mining, once again spreading fear to those unaware of Bitcoin’s actual functioning mechanics and triggering a short winter for price over the summer months.

Bitcoin rose from $8,000 to $60,000 in less than one year before correcting below its 200-day MA at around $40,000 in May 2021. Source: TradingView.

Despite the traditional stock market view that an asset below its 200-day MA could be in a bear market, for Bitcoin, it could represent a sale event. Given the peer-to-peer (P2P) currency’s strong, unique fundamentals and its history of crushing all other assets over the past 10 years, a dip below a technical indicator can serve as a discount indication, especially given Bitcoin’s volatility, which makes it plunge and soar more rapidly than traditional assets.

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  • bitcoinBitcoin(BTC)$26,051.000.02%
  • ethereumEthereum(ETH)$1,652.21-0.04%
  • tetherTether(USDT)$1.00-0.08%
  • binancecoinBNB(BNB)$217.290.72%
  • rippleXRP(XRP)$0.521.75%
  • usd-coinUSD Coin(USDC)$1.00-0.04%
  • cardanoCardano(ADA)$0.260196-0.85%
  • dogecoinDogecoin(DOGE)$0.0631641.33%
  • tronTRON(TRX)$0.0774861.09%
  • polkadotPolkadot(DOT)$4.501.99%
  • litecoinLitecoin(LTC)$65.301.07%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$26,065.000.00%
  • bitcoin-cashBitcoin Cash(BCH)$189.59-0.41%
  • uniswapUniswap(UNI)$4.58-0.60%
  • stellarStellar(XLM)$0.1229001.01%
  • moneroMonero(XMR)$141.101.34%
  • aaveAave(AAVE)$56.961.06%
  • havvenSynthetix Network(SNX)$2.06-0.07%
  • tezosTezos(XTZ)$0.701.39%
  • eosEOS(EOS)$0.581.13%
  • theta-tokenTheta Network(THETA)$0.641.26%
  • bitcoin-cash-svBitcoin SV(BSV)$29.94-1.07%
  • nemNEM(XEM)$0.025210-0.32%