Bitcoin Slips Below 200-Day SMA, Presents Dual Price Potential

In
the
last
two
years,
Bitcoin
(BTC)
has
produced
a
strong
positive
price
performance
gaining
by
over
300%
since
the
start
of
2023.
In
2024
alone,
the
crypto
market
leader
has
surged
by
40%
notably
reaching
a
new
all-time
high
of
$73,750
in
March.
However,
recent
price
developments
indicate
that
Bitcoin’s
upward
price
trajectory
may
experience
significant
changes
in
the
coming
months.

200-Day
SMA
Signals
Bitcoin’s
Price
At
Crossroads

In
an
X
post
on
Saturday,
popular
crypto
analyst
Ali
Martinez
shared
that
the
price
of
BTC
has
recently
dipped
below
its
200-day
simple
moving
average
(SMA),
indicating
the
asset
is
subject
to
a
change
in
price
movement. 

For
context,
the
simple
moving
average,
one
of
the
most
common
trading
tools,
is
used
to
identify
trends
in
price
data
over
a
specific
time
e.g.
200
days.
As
the
name
implies,
the
indicator
represents
the
average
of
all
price
points
in
the
given
period,
allowing
traders
to
gauge
the
overall
direction
of
the
market.

Traditionally,
when
an
asset’s
price
crosses
above
the
SMA,
it
indicates
a
price
change
in
the
upward
direction
although
the
reality
of
the
expected
price
rise
depends
on
the
SMA’s
time
frame.
Alternatively,
when
a
token’s
price
dips
below
the
SMA,
it
represents
a
sell
signal
as
a
decline
in
price
is
expected.

However,
Martinez
postulates
that
BTC’s
current
dip
below
its
200-day
SMA
is
temporary
and
presents
a
buying
opportunity
for
investors, 
backing
the
token’s
potential
to
maintain
its
current
bullish
trend.
Albeit,
in
a
situation
where
Bitcoin’s
stay
below
the
200-day
SMA
becomes
longer,
the
analyst
predicts
such
development
could
initiate
a
bear
market
for
the
premier
cryptocurrency.

Bitcoin
Price
Overview

Based
on
data
from
CoinMarketCap,
BTC
trades
at
$59,995
with
a
1.77%
decline
in
the
last
seven
days.
This
negative
performance
underlines
the
asset’s
struggle
in
the
last
month
during
which
it
lost
over
8%
of
its
value,
briefly
falling
below
$50,000. 

Albeit,
community
sentiment
on
Bitcoin
remains
largely
bullish
indicating
that
many
investors
back
the
token
to
prove
profitable
in
the
long
term.

The
premier
cryptocurrency
has
been
repeatedly
tipped
to
hit
six-figure
values
based
on
historical
price
data
and
other
factors
including
the
Bitcoin
spot
ETF
market
and
most
recently
potential
changes
in
the
US
government
policy
on
digital
assets.
However,
Bitcoin’s
short-term
price
targets
for
now
lie
at
$62,000
and
$70,000,
both
of
which
present
significant
resistance
levels
for
the
crypto
market
leader.