Bitcoin is below the average of the bear market bottom. Last year in June, bitcoin closed for the first time below the 50-month moving average and is still below it. This month, Bitcoin is trying hard to close above the 50-month moving average.
In the last eight years, bitcoin had never closed a single month below the 50-month moving average until June 2022.
In this article, I will explain the current price analysis of Bitcoin (BTC), Ethereum (ETH), and (BNB). I will also share the Dollar index and S&P500.
Bitcoin Price Analysis
Last week, the bitcoin (BTC) tested the $22,700 support and closes at $23,562. Bitcoin was rejected exactly from the 50 weekly moving average as discussed last week. Bitcoin (BTC) is now finding support at $22,500. If bitcoin falls below the $22,500 then $19,700 is the major support for Bitcoin (BTC).
Currently, Bitcoin (BTC) is hovering around $23,300 at the time of writing this. This week the 50 weekly moving average is at $24,000. Closing a week above this level is bullish for the BTC.
However, the price action remains choppy near the 50 weekly moving average as seen in previous bear cycles. At the time of writing, the 50-weekly moving average is at $23,600.
On a weekly time frame, indicators like Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Moving Average (MA) is bearish.
50 Monthly Moving Average as Bitcoin Bottom
Historically, the 50-month moving average worked as strong support for bitcoin (BTC) in the bear market. However, bitcoin closed the first monthly candle below the 50-month moving average last year. It’s been 9 months bitcoin is below the 50-month moving average.
Bitcoin is testing 50 monthly moving averages second time in the last two months.
Technically, the 50-month moving average has worked as the bottom for bitcoin many times. According to this calculation bitcoin (BTC) is still below the average price of the bear market’s bottom.
Ethereum Price Analysis
On a monthly time frame, Ethereum (ETH) is still holding above the 50-month moving average. Ethereum (ETH) successfully bounced from the 50-month moving average after testing 6 times.
In the last bear market, ethereum (ETH) closed a month below the 50-month moving average and it took ETH 11 months to get above the 50-weekly moving average. According to this reference, ETH is still in a good buying zone.
On a weekly time frame, Ethereum (ETH) tested 50 weekly moving averages two times this month. Ethereum was rejected from the 50 weekly moving average and trading around $1623 at the time of writing this.
Traders are looking for major support around $1,435, an area of 20 weekly moving average. ETH price action will be range bound between 50 MA and 20 MA in the coming weeks.
Binance Coin (BNB) Price Analysis
Binance coin (BNB) is still holding above the 20-50 Weekly moving average. BNB prices are in long side waves trend on a higher time frame.
BNB is trading at a very critical price zone. BNB formed a triple top that is a bearish pattern and rejected badly from the weekly resistance area of $330.
The major support for the BNB is a 50 weekly moving average which is $290. BNB can fall freely to $200 if closes a week below the 50 weekly moving average.
Dollar Index (DXY)
Dollar Index (DXY) tested the 20-50 weekly moving average last week and was rejected badly. DXY is -0.60% in one day. DXY on the weekly time frame is forming a bearish Head & Shoulder pattern. DXY’s today’s opening is at 105.26 and changing hands around 104.26 at the time of writing.
Since there is a strong correlation between DXY and Crypto Market. The fall in the dollar price means good days for crypto ahead. There is an inverse relation between DXY and Crypto Market.
The S&P 500 closes below the 20-weekly moving average last week. The S&P500 is struggling near the 20 weekly moving average. Despite the good opening on Monday S&P 500 is turning red.
The S&P500 Index closed at the 3,970 last week and currently hovering at 3983. The strong support for the S&P500 is 3951, an area of 50 weekly moving averages.
As long as the index is above the 50 weekly moving average there is not any sign of any flash crash in the market. However, the top 500 shares may show slow and choppy price action.
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*Disclaimer: All views expressed in this article is for educational purposes only and should not be constituted as financial advice.