Worst Quarterly Bitcoin Crash In A Decade Closes Above Key Support


Last week, as the monthly June candle neared its end in bitcoin, it also signaled the end of the second quarter and the first half of the year. Suffered the highest cryptocurrency Worst quarterly decline Since 2011, but eventually held above a major support level.

Here’s a closer look at the currently holding quarterly support level in BTCUSD and how it has almost made a major bottom in the past.

Bitcoin crash drops to the level where the markets are falling

Throughout the 2018 bear market, the primary narrative giving hope to bag holders has been the fact that institutions will eventually get into bitcoin and make a huge difference. Institutions eventually found their way into cryptocurrencies, leaving many at risk of bankruptcy.

Larger organizations have been known to take quarters, and with two consecutive bad quarters of performance in crypto, organizations could be poised to make a comeback.

Related reading | Bitcoin Monthly Marks Down Bollinger Band, Tool Creator Hints Down

The recent sell-off has sent the price of Bitcoin a lot lower than many had expected – by more than 50%, making it Worst quarterly closing in a decade. It also landed a dead slap on Bollinger’s middle band.

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BTCUSD quarterly closes above the middle-SMA | Source: BTCUSD on TradingView.com

How to read Bollinger Bands and what comes next

The Bollinger Bands It is a volatility measurement tool, designed by John Bollinger in the 1980s. The middle Bollinger band is a 20-period moving average, with the upper and lower bands set to 2 standard deviations.

Based on statistics, most of the price movements occur within the upper and lower bands. A cross or below the SMA is considered a buy or sell signal.

Every bear market in the past has touched this same simple moving average before the uptrend of 2016 and 2017, and then again before the bullish rally of 2020. Bitcoin price is back at that line again, touching it for the second consecutive quarter.

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BTCUSD monthly touches down on the lower Bollinger Band | Source: BTCUSD on TradingView.com

The fall through the SMA would be unprecedented in the history of Bitcoin. But Bitcoin has been doing unprecedented things lately. For example, the same tool above shows a file The first touch of the lower Bollinger band on monthly time frames.

Related reading | Bitcoin Weekly RSI Sets Record For Most Oversold In History, So What Comes Next?

In theory, the price is considered low relative to the asset’s history when prices are at the lower end of the bands, while the opposite is true when the asset touches the upper bands. With this, the bitcoin price is likely to be at an all-time low for the monthly and quarterly price movement.

Could this mean that an unprecedented recovery is coming soon, or that Bitcoin will eventually lose its SMA and result in a more disastrous move?

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Featured image from iStockPhoto, Charts from TradingView.com





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