last week When the June monthly candle closes in Bitcoin, it also signals the end of the second quarter of the year and the first half. The top cryptocurrency has suffered. The worst quarterly decline since 2011, but ultimately just above key support levels.
Here’s a closer look at the quarterly support levels held in BTCUSD and how it made its past major lows.
Bitcoin Crash Drops to Bearish Levels Below
Throughout the 2018 bear market, the hopeful introductory narrative to wallet holders is the fact that institutions will eventually enter Bitcoin and it will make all the difference. people at risk of bankruptcy
It is known that large institutions take their positions on a quarterly basis. And with two consecutive quarters of poor performance in cryptocurrencies, institutions are poised to make a comeback.
Related reading | Bitcoin Monthly Bollinger Band Tag Below Tool Builder Guide Below
The latest selloff brought Bitcoin prices much lower than many expected – a gain of more than 50%, making it the worst quarterly close in a decade. It also landed on the middle Bollinger Band.
BTCUSD quarterly closes above the middle-SMA | Source: BTCUSD on TradingView.com
How to read Bollinger Bands and what will happen next
The Bollinger Bands is a volatility measuring tool designed by John Bollinger in 1980. The middle Bollinger bands are 20-period moving averages, with the upper and lower bands set at 2 standard deviations.
Statistically, most of the price movements occur within the upper and lower bands. A cross above or below the SMA is considered a buy or sell signal.
Each bear market in the past experienced this same SMA before the 2016 and 2017 bulls and again before the 2020 bull run. Bitcoin price has returned to this line. It’s the second consecutive quarter.
BTCUSD monthly touches down on the lower Bollinger Band | Source: BTCUSD on TradingView.com
A fall through SMA would be unprecedented in the history of Bitcoin, but recently Bitcoin has done something that has never happened before. For example, the same tool above shows. First time touching Bollinger Band in monthly time frame.
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Theoretically, the price is considered low relative to the asset’s history when the price is at the lower end of the band. While the opposite is true when the asset touches the upper band, this way, the Bitcoin price may be at its lowest point relative to monthly and quarterly price movements.
Does this mean an unprecedented recovery is coming soon or Bitcoin may eventually lose the SMA and result in more disastrous moves?
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Featured image from iStockPhoto, Charts from TradingView.com
