Bitcoin bulls have been unable to gain much ground in recent months, but this extended period of sluggish price action has some market experts optimistic about the future of the world’s largest cryptocurrency.
Because Bitcoin has stuck below its 200-day moving average, Jake Gordon, an analyst at Bespoke Investment Group, believes it is close to bottoming (MA).
After staying below the aforementioned MA for an extended period of time, Bitcoin usually generates big gains. According to Bespoke Investment Group, the average return after at least a 50-day bearish streak is around 31%. The average annual return is a mind-blowing 226 percent.
Image by bloomberg.com
Bitcoin has now been below the 200 MA for 70 days in a row, one of the longest such streaks in history.
In fact, the flagship coin is trading below its 100-day and 50-day moving averages, indicating that it is oversold.
Bitcoin has dropped 44.18 percent since its all-time high. On various crypto exchanges, the largest cryptocurrency is presently trading at $38,600.
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