Holding Long on Bitcoin (BTC) as the 50 Daily SMA Holds
Cryptocurrencies have been bearish for 10 days, with BTC retreating close to $27,000 but the 50 daily SMA is holding as support
Cryptocurrencies have been bullish since the beginning of this year, as the economic uncertainties and recently the banking crisis pushed investors toward the crypto market. Bitcoin pushed above $31,000 by the middle of this month, as buyers gave it another push, but started reversing lower and fell below $30,000 last week.
The crypto market is going through a setback, with Bitcoin retreating by around 10% in the last 10 days. Although, the decline has stalled just above the 50 SMA (yellow) on the daily chart, which is standing above $27,000. The price slipped close to this moving average late last week and in the last several days we have seen a consolidation around here. Neither buyers nor sellers seem to want to take charge. The decline in value from above $31,000 was caused by a series of events that led to traders selling their assets in a state of panic, which in turn caused widespread liquidations.
Bitcoin Daily Chart – The Retreat Has Stalled at the 50 SMA
BTC is oversold now according to the stochastic indicator
However, several on-chain metrics are indicating that Bitcoin buyers could soon get in and reverse the price, sending it back above $30,000. This suggests that a rebound is more likely than a continuation lower below $25,000. As investor confidence in the broader crypto industry wanes, investors may start reallocating funds from the altcoin sector to Bitcoin in the coming days. On March 12, market sentiment surrounding Bitcoin reached great levels in the aftermath of the US banking crisis.
But, since the BTC price crossed $25,000, investor confidence has declined, causing Bitcoin’s weighed sentiment to reach its lowest level since March 2. Weighed Sentiment evaluates investors’ expectations by comparing the ratio of positive mentions of an asset to negative mentions across relevant social media channels. So, as the price consolidates around here, it is likely that buyers start to regain confidence and push BTC back up again this week.
Bitcoin BTC Live Chart
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