This is expected for the price of bitcoin at the end of the weekend

Key facts:
  • For several days now, bitcoin has been trading near the 200-week moving average.

  • Exceeding this average in the past has been followed by large recoveries.

As is known, the Bitcoin (BTC) and cryptocurrency market does not rest, not even on weekends. However, the first Sunday in August could be especially important for the cryptocurrency’s market cap, according to specialist Scott Melker, aka The Wolf of All Streets.

As Melker explains in his daily report, The Wolf Den, “All eyes will be on.” The 200-week moving average (200 watt MA) and its relationship to the price of Bitcoin at the end of the week. If the cryptocurrency ends up on Sunday with a value above this metric, hovering around $22,800 according to Trading View data at the time of writing this note, that would be a good sign.

As reported by CriptoNoticias, Bitcoin managed to beat this moving average after 2 months on August 5. It’s the seventh time in its history that it has done so, and it has always been a precursor to a major rebound in its market value.

For example, this was the case in March 2020, in the midst of a pandemic, when the price of the crypto-asset fell below the 200W MA. After that scale was broken, its value had quadrupled by the end of that year..

On the other hand, in a more optimistic scenario, If Bitcoin reaches $32,375, it will be a bear market breakoutsays the analyst. “Good luck with that,” he explained, hinting at his disbelief at the possibility.

Bitcoin price and 200-week moving average
Since July 18, the price of Bitcoin and the 200-week moving average (in red) are almost on the same line. Source: Scott Melker / Trading View.

The 200W moving average and the bitcoin price are almost in the same line for about two weeks. This can be seen in the chart below, which Merkel herself shares.

An alliance between Coinbase and BlackRock, a weight factor

One of the first points Scott Merkel mentioned in his report is the partnership between crypto exchange Coinbase and the world’s largest fund manager, BlackRock. According to this newspaper, this union had positive and immediate effects on the stock exchange’s shares, with an increase of 45%.

BlackRock is now providing direct access to cryptocurrencies, starting with bitcoin, for some of its customers. The arrival of an actor of this size to the Bitcoin market has been expected for yearssays Merkel, and it’s paying off now.

“This is a decisive victory,” says the analyst, assuring that “the world’s money will start arriving in the cryptocurrency market,” although it “will take time.” Meanwhile, the news could be a positive boost for the market, considering that the arrival of institutional funds has generated expectations about how it will affect the bitcoin price.

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