Bitcoin price touches 200 MA: historic bottom area?

The Bitcoin price is currently at $62.500. a decline of 6.9% in the past 24 hours. Analyst Scott Melker points to a striking technical signal: Bitcoin touches the 200-week moving average (MA) for the first time in a long time, after the price had previously fallen through the 50-week MA. Historically, this level almost always marks a bottom in the Bitcoin cycle.

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Recovery from $55.000 to $62.000

Melker shares a weekly chart that clearly shows how the Bitcoin price has fallen sharply in recent weeks. Notably, the price had previously approached the 200 MA around $55.000 and has since recovered to the current level of $62.000, This recovery indicates that there is clear buying pressure at this technical level.

The RSI on the weekly chart stands at 33.66, which points to an oversold situation. This reinforces the picture of a possible bottom, although the price continues to fall further today and uncertainty in the market is high.

Only One Exception in History

What makes Melker’s analysis so striking is the historical context. In every previous Bitcoin cycle, the 200-week MA functioned as the absolute bottom area. There is only one period in which the price traded below this level for an extended period: from June 2022 to March 2023. In all other cases, a touch of the 200 MA was the signal for a new recovery.

Whether that pattern repeats itself now is, of course, uncertain. The current macro conditions and the longest outflow period ever for Bitcoin ETFs are creating additional pressure on the price. Nevertheless, many analysts are watching this level with interest. Earlier, the Reserve Risk indicator already pointed to possible accumulation opportunities for Bitcoin, which aligns with the picture Melker paints.

For anyone considering buying Bitcoin, this is therefore a technically important moment to keep an eye on.