Bitcoin Buy Signal: Why The 200-Week Moving Average Has Been A Flawless Entry Point

The 200-week moving average is one of the most critical macro indicators for Bitcoin, serving as the definitive divide between bear market capitulation and long-term ￰0￱ BTC’s price movements are notorious for their sudden, dramatic swings, history shows that the 200 WMA technical indicator has stood out with remarkable ￰1￱ The 200 WMA Has Defined Every Bitcoin Cycle Luke Broyles, an observer of Bitcoin’s market cycles, has noted on X that BTC has been screaming buy all 5 times that it hit the 200 ￰2￱ track record leads many to ask if they should hold a lump sum on the sidelines until that ￰3￱ Reading: Bitcoin Price Wobbles — Is A Sharp Downside Move On The Horizon?

Broyles acknowledges that while BTC has been trending down, that hasn’t been the worst idea in the ￰4￱ it isn’t a magic ￰5￱ Broyles explains, 3 out of the 5 times it has hit the 200 WMA, it was there for mere ￰6￱ worst part is that when BTC trends upward, the 200 WMA rises with it, making the ideal entry a constantly moving target. However, Broyles provided a vivid example from recent ￰7￱ April 2023, BTC was $31,000, and the 200 WMA was $25,000. Before that, BTC was $16,000 months ago, and many thought a pullback into the $20,000 range was likely. Meanwhile, the analyst advocates for a buy at 31,000.

During that time, 200 WMA was so close, and they cared more about bragging rights of I bought at the 200 WMA instead of simply accumulating ￰8￱ the time BTC briefly dipped below the line again, it was already at $28,000, and that was the last chance. Currently, the 200 WMA sits comfortably above $50,000, and if BTC’s uptrend continues, that line could climb to $70,000 or even $100,000 before price ever revisits ￰9￱ Bitcoin Remains Bullish On Higher Timeframes An analyst known as Scient has emphasized that BTC is on the higher ￰10￱ blue zone remains a must-hold area for bullish continuation, with price consolidating above $108,000 for nearly three ￰11￱ range could be setting up a clean flip of that level into support before a major expansion ￰12￱ Reading: Bitcoin Retests STH Cost Basis Again: Is This Where Support Flips?

Furthermore, all liquidity below the range lows (RLs) has been ￰13￱ recent drop followed a higher high (HH) on the 3-day chart, and now BTC sits right at the RLs, an ideal zone where a higher low (HL) could confirm a continuation ￰14￱ pointed out that it’s the candle body that matters for divergence, the wicks don’t count. He’s watching closely for hidden bullish divergences to develop on the 3D timeframe, which would confirm the bullish ￰15￱ to the analyst, this week looks relatively slow, but the next volatile move will likely come next ￰16￱ image from Pixabay, chart from ￰17￱