Rekt Capital Says Bitcoin Buying Near 200-Week SMA Weakens in August
Summary
- Analyst Rekt Capital said Bitcoin (BTC) has seen weaker buying interest near the 200-week simple moving average (SMA) in August.
- He said buy-side volume has generally declined since March, while support at the 200-week SMA has also gradually weakened.
- Rekt Capital said the 200-week SMA could fail as a support level over the medium term, and has previously outlined a break below the 200-week SMA as its base-case scenario.
Forecast Trend Report by Period
Bitcoin buying interest around its 200-week simple moving average, or SMA, has weakened this month, according to crypto analyst Rekt Capital.
On August 13, Rekt Capital said Bitcoin rebounded after finding support near the 200-week SMA in July. In August, however, that zone has not produced a clear buying response. He also said buy-side volume has generally declined since March, while support at the 200-week SMA has gradually weakened.
The pattern is similar to a view he outlined about a month and a half ago. At the time, he said the 200-week SMA could serve as short-term support in July and trigger a limited rebound, but could eventually give way over the medium term.
Bitcoin did find support at that moving average in July, he added, but the level now appears to be losing strength as a support line in August. Rekt Capital has previously presented a move below the 200-week SMA as its base-case scenario over the medium term.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.