By Alicia Maher
A new report by Decentrader predicts that BTC may soon trade at the $20K levels depending on the market bias and forces in the next few weeks. The trading platform claimed that BTC is in its final support range, the range between its current price and $20K.
Eyeing The Price At 20-Week And 200-Week MA
Russia’s military action on Ukraine has caused a massive downtrend on all markets, including the crypto market. Now, there is uncertainty in other world regions like Asia, the United States, and Europe. Despite losing 13% in the last 24 hours, analysts opine that BTC will still shed more losses as the market continues reacting to Russia’s invasion of Ukraine.
Hence, Decentrader has warned traders to be cautious when making their trade decisions. One of the platform’s analysts, Philip Swift, surmised, “executing a clear trading plan is an absolute must during this uncertain period. The best option for traders is to have a strong risk management principle and clear exit points.” He further said, “the upcoming weeks would be favorable for value investors as we approach significant historic support levels.
A Repeat Of History?
Any part of these levels would be ideal for a dollar-cost-average entry point.” The 200-week MA, which currently stands at $20K and rising, is the deepest support level for BTC price. Unfortunately, it looks like it will be tested in this bear market, which will be a first if it happens. Swift opines that BTC will trade at sub-$30K levels and levels corresponding to the 20-week MA.
The price corresponding to the 20-week MA will be reminiscent of the low of March 2020 during the heat of the pandemic. The Decentrader report further explained that “a continued price drop would mean that BTC would trade at the $29.38K and $25.26K support levels as indicated by the 20-week MA deviation bands.”
BTC 1-week chart. Source: TradingView
“The last time this happened was the march 2020 crash even though it almost happened again last summer,” the report further noted. The report added that BTC’s next crucial resistances are at the $37.5K and $41.1K levels, respectively, in case there is a price reversal, even if it is hard to imagine such a reversal happening at the moment.
Level-Headedness Is Essential For Traders Right Now – Twitter Analyst
Other crypto analysts have joined the voices with Decentrader in advising traders to trade without letting their emotions rule them under the present conditions. A famous crypto analyst on Twitter with the username, Crypto Chase, stated that traders need to execute their long-term trade plan in these current circumstances.
Part of crypto chase’s latest report states that “the volatility would likely persist for the next couple of days. Hence, traders with no long-term trading strategies (including me) should stay off the market. Caution is recommended with this volatile yet typical trade times.” As the debate rages on between Gold and BTC (AKA digital gold), Gold is winning the argument right now after hitting $1.98K, while BTC is only recovering from its $34.35K lows.