Crypto: Bitcoin Flash Crash Recovery To $100k Could Take Months: Analyst

Multiple charts and historical data suggest Bitcoin’s recovery from its weekend crash below $75,000 could take several months, rather than producing a quick rebound.

Bitcoin (BTC) closed its weekly candle at $76,931 on Sunday, causing BTC to lose its 100-week moving average for the first time since October 2023. Analysts are now weighing whether the move marks the early stages of a bear market and what this shift may mean for Bitcoin’s recovery in the long term.

Bitcoin closed a weekly candle below the 100-week simple moving average, a trend linked with multi-month drawdowns.

Past breaks below the weekly trend lasted between 182 and 532 days.

Heavy spot volume between $85,000 and $95,000 may turn that zone into a major resistance area.

Bitcoin closed a weekly candle below its 100-week simple moving average (SMA), which sits near $87,500. This marks a loss of a key macro trend level for BTC.

Crypto proponent Brett noted that, aside from the 2020 COVID-19 flash crash, Bitcoin has spent extended periods below the 100-week SMA. During the 2014 to 2015 cycle, BTC remained under the level for 357 days as prices ranged between $200 and $600 following the 2013 bull market peak.

In 2018 to 2019, the period lasted 182 days, coinciding with the bear market bottom between $3,000 and $6,000.

In 2022, Bitcoin spent 532 days below the 100-week SMA after the FTX collapse, consolidating between $16,000 and $25,000.

Each instance led to an accumulation phase rather than a quick rebound, suggesting time may again be the key factor before the next bullish period.

Source: CoinTelegraph