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...

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