An analyst has explained how a moving average (MA) that has historically served as the boundary for bear markets is situated at this level.<\/p>\n
In a new post<\/a> on X, analyst James Van Straten has shared a couple of important MAs related to Bitcoin. An \u201cMA\u201d is a technical analysis (TA)<\/a> tool that calculates the average value of any given quantity and as its name implies, it moves in time along with the quantity and updates its value accordingly.<\/p>\n MAs can be taken over any window of time, whether that be just 10 minutes or 10 years. The main use of this indicator is for studying long-term trends, as it helps filter out any short-term deviations in the chart.<\/p>\n Here is the chart shared by the analyst, that shows the trend in the 50-week and 200-day MAs of the Bitcoin price over the past year:<\/p>\n As is visible in the above graph, the Bitcoin price has dropped below the 200-day MA after the recent market downturn<\/a>, meaning that the asset\u2019s value now is lower than the average for the last 200 days.<\/p>\n In TA, the 200-day MA is often looked at as a boundary line between bearish and bullish trends, with a breakdown of the level being considered a bad sign. Thus, it would appear that BTC has lost this important level with its latest plunge.<\/p>\n Another level that may divide macro trends, however, is the 50-week MA, which the cryptocurrency still remains above. \u201cBelow 50WMA is a bear market,\u201d notes Van Straten. At present, the level is situated around $75,195.<\/p>\n If BTC\u2019s current bearish trajectory continues, it\u2019s possible that this line might be put to test. The analyst has pointed out, though, that the coin has dropped under the 200-day MA a few times before and managed to recover before breaking below the 50-week MA. It now remains to be seen whether a similar pattern would play out this time as well or not.<\/p>\n In some other news, the downwards trajectory of the market has meant that a leverage flush has occurred over on the derivatives side of the sector, as CryptoQuant author Axel Adler Jr has shared in an X post<\/a>.<\/p>\n