Crypto: Bitcoin Beats Ftx, Covid-19 Crash With Record Dive Below 200-day...

Bitcoin bear market momentum sparked a record crash below the 200-day simple moving average as analysis expected BTC price "mean reversion" next.

Bitcoin (BTC) rebounding is now “highly probable” as BTC price action sets another bearish record.

Bitcoin has never traded so far below its 200-day moving average, data shows.

BTC price action is due “mean reversion” as a result.

Analysis describes a “macro-driven” Bitcoin bear market now in progress.

New analysis from Martin Leinweber, director of digital asset research and strategy at European index provider MarketVector Indexes, says Bitcoin’s long-term investment thesis is “intact.”

BTC price action has never strayed so far from its 200-day simple moving average (SMA), and Leinweber said the dip below $60,000 was anything but “normal.”

“Bitcoin is -2.88σ below its 200-day moving average. In 10 years of data, this has literally NEVER happened before. Not during COVID. Not during FTX. Never,” he wrote in an X thread on Friday.

The analysis places this week’s crash among Bitcoin’s 15 fastest, with BTC/USD dropping by more than 22% in a single week, a worse rate than in 98.9% of its history.

“When you're in the 99th percentile of bad outcomes, mean reversion becomes highly probable,” Leinweber continued.

Source: CoinTelegraph