In the latest report, we identified some bullish and bearish trends to be taken into consideration for the mid-term price predictions. A recovery above $8,000 is a good signal and a big relief to the long-term bitcoin bulls, as it may be regarded as a buying opportunity.
Those with long-term conviction in this asset class should welcome this pullback with open arms as it presents an opportunity to buy or add to existing positions at lower prices.
Bitcoin price tends to do better after a sharp collapse of 10% or more in 24 H timeframe. The average returns 7 days, 14 days, and 30 days are all better after a strong sell-off than on all other days. These findings support the strategy of buying the dips.
On the opposite side, there is a potential for an extended downside move as BTCUSD slipped below SMA-200 for the first time since March 2018. The researchers point out that these developments are usually followed by downside momentum with negative returns within the time span of 140 to 30 days.
At the time of writing, BTCUSD is changing hands at $8,210, down 2% in recent 24 hours and about 1% since the beginning of the day.