The 200-day moving average has historically served as a reliable support in bull markets and significant resistance in bear markets.
Either it will be supported by the trendline, forming a pullback to confirm another bullish leg, or the price will break below the trendline, attempting to test lower support levels.
Bitcoin has been rejected from the upper trendline of the mentioned channel on the 4-hour period, plummeting below the $45K mark.
The RSI of Bitcoin, on the other hand, has a multi-day resistance trendline that it must break above if it is to soar to higher price levels.
However, it tends to get broken to the downside for the final capitulation, and when the market returns above it, a bull market begins.
However, if the price fails to break above the 200-day moving average, a deeper drop towards the area between Delta Cap and Realized Cap would be expected, similar to previous bear markets.
Crypto’s technological and economic implications are what interest him most, and he has one eye turned to the market whenever he’s not sleeping.