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If the first cryptocurrency manages to gain a foothold above the 200-week moving average, Bitcoin prices could rise 240% from current levels. This was stated by experts from
If the first cryptocurrency manages to gain a foothold above the 200-week moving average, Bitcoin prices could rise 240% from current levels. This was stated by experts from asset manager Ark Invest.
1/ Bitcoin retraces its 200-week moving average after breaching only 7 times in its price history.
Bitcoin’s 1-year return after reclaiming 200 WMA is ~240% on average. pic.twitter.com/Si1kXM7iKT
— Yassine Elmadjra (@yassineARK) August 3, 2022
“Bitcoin has returned to the 200-week moving average after breaking only for the seventh time in its price history. The annual return on the asset averages around 240% after the 200 MA rebound,” Analyst Yassin Elmanjra wrote.
In a published report, Ark Invest experts noted that the behavior of price quotes looks more like a sell-off at the height of the COVID-19 crisis rather than a bear market in 2018.
At the same time, analysts acknowledged that if the correction turns out to be as serious as it was in 2018, the bitcoin price could drop well below current levels.
Bitcoin prices have lost 72% from the historical maximum – usually the asset has reached the end of the global cycle with a correction of more than 80%.
Ark Invest noted that one of the positive signals for the market is the growth of Ethereum quotes against Bitcoin. Analysts attribute the dynamics to the transition of the second cryptocurrency’s blockchain to the Proof-of-Stake consensus algorithm using capitalization.
“In July, Ethereum’s price outperformed Bitcoin by 34%, indicating that investor sentiment is strengthening. Historically, ETH has outperformed BTC during bull cycles and underperformed in bear markets.”
Experts also noted the decrease in the volume of borrowed funds in the DeFi sector – the indicator has decreased by 77% since the beginning of the year and the total collateral ratio has reached 324%.
Recall that in August, Arcane Research analysts said that if bitcoin corrects above $20,700, its price will quickly rise to the $27,000-28,000 range.
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Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
