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Bitcoin 10-week moving average triggers a key signal, historical data reveals potential correction risk
【Chain Wen】Recently, traders have noticed a noteworthy technical signal—the 10-week and 50-week moving averages of Bitcoin have crossed. It may sound insignificant, but a look into history reveals some clues.
Similar moving average crossovers in the past have often signaled certain trends. In September 2014, there was a 67% plunge; in June 2018, a 54% halving; during the black swan event in March 2020, a 53% crash; and in January 2022, a 64% decline. These were not minor adjustments; each one was enough to keep holders awake at night.
If history repeats itself, at this pace, we might see a correction of 50% to 60%. In other words, Bitcoin could find support in the range of $38,000 to $50,000. Of course, technical analysis is just a reference; the market has countless variables, but these data points are worth keeping in mind.