Bitcoin Falls to $54,500: A Chance to Accumulate

Bitcoin continues to decline today, reaching $54,500. However, this could be a good opportunity for investors to accumulate at a lower price.

Azcnews Bitcoin Falls To $54,500 A Chance To Accumulate

Bitcoin has recently fallen to $54,500, marking a decline of over 10% in the past week. On July 7, 2024, cryptocurrency analyst Benjamin Cowen shared an insightful thread on X (formerly Twitter) discussing Bitcoin’s current position relative to its 200-day Simple Moving Average (SMA). Cowen pointed out that Bitcoin (BTC) is currently below its 200-day SMA, having hit a local low on July 5, 2024. He emphasized that Bitcoin’s performance in the fourth quarter (Q4) of this year largely depends on how quickly it can reclaim its 200-day SMA.

Btc Chart
Btc Chart

Cowen drew historical parallels to support his analysis. He noted that in 2013, Bitcoin dipped below the 200-day SMA and reached a local low on July 5, before gradually recovering to previous highs and then experiencing a Q4 rally. Similarly, in 2016, Bitcoin fell below the 200-day SMA in August but quickly regained it, leading to a Q4 surge. However, Cowen mentioned that in 2019, Bitcoin dropped below the 200-day SMA in September and failed to recover, resulting in a Q4 downturn.

Cowen suggests that the sooner Bitcoin regains its 200-day SMA this year, the higher the likelihood of a price surge in Q4. Conversely, he believes that the longer Bitcoin takes to reclaim this moving average, the greater the chance of a price decline in Q4, similar to what happened in 2019. He stresses the importance of closely monitoring the 200-day SMA to assess potential market movements.


Cowen also cautions against over-reliance on historical comparisons, noting that each year has its unique factors affecting Bitcoin’s price. He advises using past years as a reference but not as a definitive blueprint for predicting future outcomes.

The 200-day Simple Moving Average (SMA) is a crucial technical indicator used by traders and analysts to identify long-term trends. It smooths out price data by averaging the closing prices over the past 200 days. When Bitcoin’s price is above the 200-day SMA, it is generally considered to be in a bullish trend. Conversely, when the price is below the 200-day SMA, it is typically seen as bearish. Local lows, such as the one on July 5, 2024, indicate the lowest price Bitcoin has reached within a specific timeframe, potentially signaling a price reversal or support level.

Related: Singapore, Denmark, and the United States Best Prepared for AI

According to Cowen, reclaiming the 200-day SMA means Bitcoin’s price would rise above this average after previously being below it. This is often seen as a bullish signal, indicating a potential upward trend. Cowen’s analysis suggests that swiftly regaining this crucial moving average could lead to a price surge in Q4, while a delay might result in a decline before a potential recovery next year.

4.0/5

(1 vote)

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest

Binance Announces Listing Of Banana Gun (banana)

News | Altcoin | Editor Choice

Binance Announces Listing of Banana Gun (BANANA)

The Binance exchange has announced the listing of Banana Gun (BANANA), and this is also the first project on the Binance Airdrops Portal!

Azcnews Whales Accumulate Dogecoin Amid Price Recovery

News | Altcoin | Editor Choice

Whales Accumulate Dogecoin Amid Price Recovery

Recently, Dogecoin investors have accumulated over 60 million tokens. Some analysts believe the current price drop is only temporary.

Pixelverse Officially Announces Pixfi Token Airdrop

Editor Choice | Altcoin | News

Pixelverse Officially Announces PIXFI Token Airdrop

The renowned game Pixelverse, which has attracted close to 80 million users, has finally announced an airdrop for the community through PixelTap and the Dashboard.

Azcnews Bitcoin Drops To $64,000 Amid Us Stock Market Plunge

News | Bitcoin | Editor Choice

Bitcoin Drops to $64,000 Amid U.S. Stock Market Plunge

Bitcoin has corrected back below $64,000 as the U.S. stock market experiences a sharp decline.

Claim Dogs Airdrop (update) And Predict Dogs Price

Editor Choice | Airdrops

Get Free Dogs Airdrop (Update) and Predict Dogs Price

Continuing the mission with Dogs on Telegram, participants of the Dogs Airdrop or those who access the platform and connect their TON wallets. Additionally, predict the price of Dogs upon its listing.