A crypto analyst has identified critical price levels from previous cycles on the Bitcoin chart that could determine the cryptocurrency’s next moves in this cycle. He has highlighted Bitcoin’s former all-time high target of $65,000 and a clear target 200-week simple moving average (SMA) at $58,000 as key levels to watch.
Bitcoin’s 200W SMA Marked as Key Watch Zone
Crypto analyst VirtualBacon has gone to X part new technical chart analysis, outlining two critical Bitcoin price levels that he believes investors and traders should keep an eye on as the cryptocurrency continues its downward slide. VirtualBacon went further in a video, pointing to $65,000 and $58,000 as zones worth paying attention to for anyone looking for a good buying opportunity in the current market environment.
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VirtualBacon highlighted $58,000 as its most closely watched level, where the 200W SMA currently sits. The analyst described this indicator as one of the most consistent reliable buying zones in Bitcoin historyciting a track record that spans multiple market cycles.
He noticed that during the 2015 bear marketBitcoin’s price reached four times the SMA of 200W without ever closing below it on a weekly candle. In 2018, the 200W SMA marked the absolute bottom of that cycle’s sell-off. The COVID-19 crash of 2020 also found support at exactly this same level. The only exception came in June 2022, when the price briefly fell below the average before consolidating, then fell further by 25% after the collapse of FTX later that year.
VirtualBacon acknowledged the 2022 collapse, but emphasized that the 200W SMA of almost $58,000 remains a highly significant level given how consistently it has served as a bottom throughout Bitcoin’s history. He said the $58,000 level represents an area where long-term investors have historically taken action, often accumulating at the bottom ahead of a surge in prices.
Analyst Marks Former Bitcoin ATH as a Buying Opportunity
In its analysis, VirtualBacon identified $65,000 as the first level to look at, which corresponds to Bitcoin’s previous all-time high since the 2021 bull cycle. The analyst noted that Bitcoin has already reached this area in the current cycle, arguing that historically, former ATHs often become meaningful support when price revisits them. For investors who agree with this statement, the analyst suggested considering $65,000 as a potentially reasonable entry point into the market.
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VirtualBacon’s Bitcoin analysis in particular comes at a time when Sentiment on the crypto market remains vulnerablewith retail investors unsure whether the drop in BTC price signals a strategic buying opportunity or the start of a deeper pullback.
Bitcoin’s long-term sideways trade has also done little to restore confidence, but rather fueled fear among market participants. Earlier this week, the cryptocurrency briefly fell below $64,000 after reports of it American and Israeli airstrikes on Iran. The cryptocurrency has since risen above $70,000, marking an increase of more than 8% over 24 hours.
Featured image from Pixabay, chart from Tradingview.com