Popular crypto strategist Kevin Svenson has revealed that he uses an overlooked metric with a solid track record to determine his next move in Bitcoin (BTC).
In a recent strategy session, Svenson proved to his 68,100 YouTube subscribers that the 128-day simple moving average (SMA) is reliable in showing Bitcoin’s movements over the past five years.
“The 128-day SMA has been one of the best moving average indicators to use for years. This is an underrated moving average.
It was the support line in the 2017 bull run, in fact we have reached (this support) many times. It was originally called a bear market, we used it as resistance. We surpassed that in the 2019 bull run.
And it actually caught the crash of 2019 perfectly, and it consistently predicts big boosts, big breaks right.”
Now that Bitcoin is above the 128-day SMA, the analyst says that Bitcoin may remain in an uptrend as long as it can hold the line.
“Historically, breaking above this moving average usually means that we are transitioning to a medium-term or long-term uptrend. Provided that it really maintains (this level).
If we go below that, it becomes invalid as such a bullish indicator.”
Svenson also told his 100,900 Twitter followers that despite Bitcoin’s rally last month, investor sentiment is somewhat skeptical about the viability of the uptrend.
“Market psychology shows that we are currently in a rally of ‘disbelief’ (not believing in an uptrend).
Of course, there are never any guarantees in the market. If we fall below this breakout zone, we may also find ourselves in “downtrend denial.”
Svenson also said that in light of Bitcoin holding the 128-day SMA line, the next challenge is to retrace the 200-day resistance price of $48,300. added.
“BTC retained its bullish 128d/SMA S/R flip retest and bounced (from here).
The main price level for the bulls to move up is now $48,300 with the 200d/SMA resistance.”
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.