Bitcoin Price Rejects 100-Week MA, So Is the Pre-Halving Pump Over?

The volatility and volume in the Bitcoin (BTC) markets dropped down over the past week as the price of Bitcoin relatively stabilized. Stabilizing markets with decreasing volatility and volume usually means that spectacular movements will come back to the markets shortly.

However, what should investors expect from the markets over the short-term? The weekly candle closed below the 100-week moving average, which is a strong signal for the bullish/bearish momentum of the markets.

Crypto market daily performance. Source: Coin360

Bitcoin’s weekly candle closes below 100-WMA

The weekly candle was unable to close above the 100-WMA, which is a crucial indicator for bullish/bearish momentum. The moving average is a significant indicator of higher time frames, as the 100 and 200-WMA are often used in equity markets to show the bullish and bearish momentum of the markets.

BTC USD 1-week chart. Source: TradingView

For instance, the 100 and 200-WMA have been providing support for the crypto market throughout the whole bull cycle of 2014-2017. Similarly, the 200-WMA has provided support for the equity markets since 2009.

Alongside the close below the 100-WMA, Bitcoin price couldn’t close above the horizontal resistance level of $6,900-$7,300.

From a bullish perspective, a crucial breakout has to occur above $6,900-$7,300. Once the price of Bitcoin maintains this area for support, the 100-WMA can be classified as support. Such a move would also warrant further upwards momentum towards $9,500 and the possible start of a bull market.

However, a breakout didn’t occur, which means that support levels are still on the table.

The support levels on the weekly timeframe are structured in two big blocks. One is found at the $5,000-$5,200 level, just beneath the 200-WMA. The second one is found between $3,700-$4,100, which is confluent with the 300-WMA. These areas should be watched for support if Bitcoin starts to retrace.

Daily candles moving in a narrow range

BTC USD 1-day chart….

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