Bitcoin (BTC) fell this August 17 from USD 29,000, the support (minimum zone) that it had maintained for two months. At the time of this publication, it is trading around USD 28,500, its lowest price since June 21.
With this scenario, the analyst known as Mustache noted that “BTC is approaching very important lines.” These are the 200-week simple moving average (SMA), the 21-week EMA, and the upper Gaussian channel zone, as seen below.
The first two lines mentioned measure the average price that Bitcoin has had over long periods. That is why they could function as areas where the currency could establish support if it was above and had a fall.
Meanwhile, the Gaussian channel is a technical indicator that signals potential price reversals every time it enters its region. If it does so from the bottom, it may reflect a bullish signal, while the opposite is true if it is from the top, as is close to happening now.
Taking all this into account, Mustache believes that the moving average zone above the Gaussian channel may be where bitcoin forms its new lows. And he expects “a strong rebound” from this region.
On the other hand, with the drop to around $28,500, the analyst who identifies himself as Rekt Capital considered that “BTC would need to drop an additional 9% to 13% to complete its potential double top.”
