Bitcoin’s 200-week moving average suggests price will never drop below $ 6,700
Rising by $ 200 every month, the 200-week moving average has formed an implicit BTC floor price since Bitcoin first appeared in 2009.
Bitcoin (BTC) speculators expecting a BTC price drop of even 35% will likely be waiting forever, new data shows. In a tweet on September 22, quantitative analyst PlanB noted that Bitcoin will break the all-time habit if it drops below $ 6,700.
PlanB tracks the historical low price of BTC
PlanB was referencing the 200-week moving average (200 MA) for the BTC / USD pair. A popular tool in his work, the 200 MA has never been broken during Bitcoin’s downtrends. As of Tuesday, the level equaled $ 6,700 and continues to rise around $ 200 each month.
As long as the historical behavior continues as it has since the 200th week of Bitcoin’s existence, $ 6,700 will now form a definitive floor price.
“The 200 BTC WMA never stops working. BTC’s monthly close has never been below the 200 WMA, ”PlanB confirmed in early September, when the figure was $ 6,600.
He added that in March 2017, Bitcoin saw a “struggle” to erase the significant $ 1,000 mark forever. However, after being successful, the all-time highs of $ 20,000 reached the end of the year.
Meanwhile, this month, Cointelegraph noted that significant buying support for whales is much higher, at $ 8,800.
93% bullish on Bitcoin price in 2020
As Cointelegraph also reported, PlanB recently predicted that the BTC / USD pair would start to rise towards $ 100,000 as part of its research. Its family of stock-to-flow Bitcoin price forecasting models have made very optimistic predictions about the current four-year halving cycle, ending in 2024. Bitcoin should be online to trade at an average of $ 288,000 in That point, an “order of magnitude” higher than today, but so far, stock-to-flow has recorded BTC price increases with full precision and its methodology has yet to be disproved.
Meanwhile, a survey on the future of Bitcoin price action released after the 200 MA update has drawn 14,000 responses. The majority, 59.1% at press time, are bullish on Bitcoin for the next year and also favor BTC over other cryptocurrencies. In total, 92.8% of respondents are bullish when it comes to BTC / USD.
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