In the last seven days, ended January 13, the bitcoin price was above the US$ 42.7 thousand support, which, according to Transfero’s analysis, indicates good recovery momentum. The minimum, before the currency reached this support, was below US$ 40,000.
However, the Transfero team warns that the time is for caution. “The moving averages of 50 (MMS 50) and 200 (MMS 200) are close to crossing”, the analysts pointed out.
It is worth explaining that the Simple Moving Average of 200 periods (MMS 200) practically represents the average of the year (200 days) and, therefore, has an expressive relevance in the analysis, and is considered a long-term indicator. On the other hand, the Simple Moving Average of 50 periods (MMS 50) illustrates the quarterly average and is regarded as a medium-term indicator.
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Thus, the crossing of these averages is of great importance in graphical analysis, as it traditionally indicates the long-term market trend. “In this case, we would be facing a “Death Cross”, which would be the crossing of the MMS50 from above to below the MMS200, which would indicate a downtrend for the coming days”, the experts pointed out.
However, despite the downtrend, it is worth noting that BTC’s volatility has been decreasing, indicating that investors are considering the long term, bringing more stability to the swings.
According to Transfero, this long-term thinking, which considers bitcoin as a store of value, is reinforced according to the chart (below), which shows the number of Grayscale BTC holdings, which has hardly changed, even with the recent drop in the price of the crypto market’s leading currency.
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“Despite the bearish scenario of the market, the time is to hold the investments and wait for good buying opportunities that arise, according to the supports plotted on the BTC chart”, guided the Transfero team.
