Our chart depicts conditions that have typically brought out responsive investors and supported Bitcoin in the past, when the price slips around 30% below its 20-week moving average.
“What’s different now — other than just higher prices — is less supply and more demand, as evidenced by ETFs, notably in Canada.
Over the weekend, China’s crypto mining crackdown extended to the southwest province of Sichuan.
Now serving as support, when the 50-week mean was initially revisited at the onset of the 2018 bear market, Bitcoin bounced over 40% and took about six months to sustain lower prices,” he wrote.
“The upstart digital reserve asset may have a primary advantage of good timing, with the world going digital at about the same pace as increasing levels of monetary and fiscal stimulus.