BTC collapses but holds 200-week sma, ETH vs BTC holds .22

Mar 19, 2020 • 3 Min Read

Heavy technical damage but a few silver linings
Last week’s collapse in cryptocurrencies has left most chart patterns badly compromised with BTC breaking below its 2015-2020 uptrend. However, despite the technical damage that is now in place there are some silver linings developing notably that BTC has held and rallied from its 200-week sma, ETH has recaptured its Q4 2019 lows and ETH vs BTC has held key support at .22.

BTCAt the risk of stating the obvious, the crypto break down over the past week mirrored the ‘get me out of everything’ panic that dominated all asset classes whether they were defensive (bonds and gold) or not (equities). Lower highs and lower lows are in place for BTC leaving in a compromised, potentially vulnerable longer-term profile. However, while BTC has broken a 4-year linear uptrend it has stabilized, and bounced, from support at its 200-week sma.  We have found the 200-week sma to be an important long-term structural support level for most asset classes and was the case for BTC in 2015 and again in 2018. In addition,Fundstrat’s Digital Asset Strategist, David Grider, noted earlier this week, prior to today’s rally, that at 5.5K (BTC's 200-week sma) BTC represented an attractive valuation. Bitcoin is trading around a 5.5x Market Cap / Cu...

Unlock this page with a FREE 30-Day Trial!

*Free trial available only on a monthly plan

Reports you may have missed

BITCOIN (BTC) “CRYPTO-WINTER” LOOKS TO BE OVER.  A BULLISH 2024 LOOKS LIKELY TECHNICALLY FOLLOWING A 1Q CONSOLIDATION. Bitcoin looks to be giving off strong signals that the crypto-winter that has kept most coins in bear markets over the last couple years has finally run its course.  The act of having taken the lead ahead of many cryptocurrencies in finally surpassing the 50% retracement area of its entire decline from 2021...

Tuesday produced nearly a textbook breakout which not only exceeded late June and early July highs in SPX, but also successfully exceeded 3-4 month downtrends for SPX and DJIA -0.23% .  Seven of the 11 S&P Select SPDR ETF’s were higher by more than 3%, and volume was nearly 10/1 bullish on NYSE and NASDAQ, producing a “90% Up day” in volume.  Hourly charts show this breakout above the two former peaks...

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 1/1

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 1 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In