Bitcoin price may bottom at $15.5K if it retests this lifetime historical support level

Bitcoin (BTC) could beryllium successful for a instrumentality to levels not seen since earlier its 2020 bull marketplace if past repeats itself.

That was according to caller investigation released connected May 24, which studied Bitcoin's enactment with its 200-week moving mean (WMA).

Bitcoin level people could beryllium betwixt $15,500 and $19,000

In a Twitter thread, fashionable trader and expert Rekt Capital explained however BTC/USD could behave should it autumn to retest the 200WMA.

A lifeline passim Bitcoin's history, the 200WMA is simply a perpetually rising enactment of past enactment which has ne'er been definitively broken. 

Currently sitting astatine astir $22,000, information from Cointelegraph Markets Pro and TradingView shows, the level continues to enactment arsenic a enactment successful the soil erstwhile it comes to carnivore markets.

In times past, Rekt Capital notes, Bitcoin has "wicked" beneath the 200WMA — concisely capitulating earlier rising backmost above, allowing it to stay arsenic enactment and not alternatively flip to resistance.

Those wicks, however, person progressive up to 28% of spot price, meaning that should a akin wick hap now, Bitcoin would extremity up astatine $15,500.

"BTC tends to wick -14% to -28% beneath the 200-MA. And since the $BTC 200-MA present represents the terms constituent of ~$22000... A -14% downside wick beneath the 200-MA would effect successful a ~$19000 Bitcoin," Rekt Capital wrote.

"And if BTC were to repetition the March 2020 downside wicking extent beneath the 200-MA $BTC would revisit the ~$15500 terms point."

BTC/USD 1-week candle illustration (Bitstamp) with 200WMA. Source: TradingView

"Pay attention" beneath $23,000

As Cointelegraph reported, overmuch has been made of Bitcoin terms enactment contiguous compared to March 2020 astatine the tallness of the COVID-19 cross-market crash.

Related: Bitcoin dives to capable CME spread amid assertion caller all-time highs volition instrumentality 2 years

Rekt Capital additionally examined humanities drawdowns from all-time highs and Bitcoin's "death crosses" this month, producing a BTC terms people of $22,700 — astir precisely astatine the existent 200WM.

"BTC is dilatory approaching the 200-MA Historically, the 200-MA tends to connection fantastic opportunities with outsized ROI for semipermanent $BTC investors (green circles)," helium added alongside a illustration showing interactions.

"Should BTC so scope the 200-MA support... It would beryllium omniscient to wage attention."

BTC/USD annotated illustration with 200-week MA. Source: Rekt Capital/ Twitter

Fellow expert PlanB, creator of the stock-to-flow BTC terms models, has besides long championed the relation of the 200WMA arsenic support.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.