While some bulls decided to switch sides due to the burtal crypto market sell-off, crypto trader and analyst Carl Eric Martin (a.k.a. 'The Moon') believes that this is simply a correction within a bullish uptrend.
However, Bitcoin falling below its 20-week moving average would force him to change his bias as well.
One line that rules the roost
On Feb. 27, the Bitcoin price plunged to $8,520 before bouncing back to $8,973 due to mounting buying pressure.
In his new video, Martin explains that the 20-week MA that BTC briefly touched earlier today has been acting as a very important level for Bitcoin over the past two years. After taking a look at this chart, one can see that this line clearly shows whether or not the orange coin in a bull market.
Hence, BTC dropping below this widely-tracked average would most definitely put the bears back in the driver's seat.
image by youtube.com
BTC is still in a bull trend
Christopher Jaszczynski, the founder of MMCrypto, is also not deterred by the recent pullback. In a recently published video, he says that BTC hasn't exited its bullish trend.
Jaszczynski also points to the fact that BTC would test the 21-week MA on multiple times during the previous bull run. Now, it's highly important for Bitcoin not to close below it on the weekly chart.
If BTC cannot hold its 50.0 percent Fibonacci retracement level at $8,460, it will probably drop 38.2 percent level at $7,979, but Jaszczynski doesn't think that this will be the case.