Rekt Capital Says Bitcoin Buying Near 200-Week SMA Has Weakened in August
Summary
- Rekt Capital said Bitcoin (BTC) has seen weaker buying interest near the 200-week simple moving average (SMA) in August.
- He said buy-side trading volume has generally declined since March, while support from the 200-week SMA has also gradually weakened.
- He also said the 200-week SMA acted as short-term support in July, but had previously laid out a base-case scenario in which that support level could fail over the medium term.
Forecast Trend Report by Period
Bitcoin is seeing weaker buying interest near its 200-week simple moving average, or SMA, this month, according to crypto analyst Rekt Capital.
On Aug. 13, Rekt Capital wrote that Bitcoin rebounded last month after finding support near the 200-week SMA. In August, however, clear buying pressure has yet to emerge around that level. He also said buy-side volume has generally declined since March, while support at the 200-week SMA is gradually weakening.
The setup is similar to a scenario he outlined about a month and a half ago. At the time, he said the 200-week SMA could act as short-term support in July and lead to a limited rebound, but that the level could break down over the medium term.
Bitcoin did find support at that moving average in July, he added. But in August, the level appears to be losing strength as support. Rekt Capital had previously presented a move below the 200-week SMA as its base-case medium-term scenario.
