Bitcoin 200-week moving average hints price will never go below $6.7K

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Bitcoin (BTC) speculators waiting for a BTC price drop of even 35% will probably be waiting forever, new data shows.

In a tweet on Sep. 22, quant analyst PlanB noted that Bitcoin will break the habit of a lifetime if it goes lower than $6,700.

PlanB tracks historical BTC price floor

PlanB was referencing the 200-week moving average (200MA) for BTC/USD. A popular tool in his work, the 200MA has never been broken during Bitcoin price downtrends.

As of Tuesday, the level equated to $6,700 and continues to rise by around $200 every month.

As long as historic behavior continues as it has done since Bitcoin’s 200th week of existence, $6,700 will now form a definitive price floor.

“BTC 200WMA never goes down. BTC monthly close has never been below 200WMA,” PlanB confirmed earlier in September when the figure stood at $6,600.

He added that in March 2017, Bitcoin saw a “struggle” to clear the significant $1,000 mark for good. After succeeding, however, all-time highs of $20,000 arrived by the end of the year.

This month, meanwhile, Cointelegraph noted that significant buy support from whales lays far higher, at $8,800.

Bitcoin price vs. 200-week moving average historical chart

Bitcoin price vs. 200-week moving average historical chart. Source: PlanB/ Twitter

93% bullish on Bitcoin price in 2020

As Cointelegraph also reported, PlanB recently called for BTC/USD to begin climbing towards $100,000 as part of his research. His stock-to-flow family of Bitcoin price forecasting models has made highly bullish predictions about the current four-year halving cycle, which ends in 2024. 

Bitcoin should be in line to trade at an average $288,000 by that point — an “order of magnitude” more than at present, but so far, stock-to-flow has charted BTC price rises with complete accuracy and its methodology is yet to be disproven.

Meanwhile, a survey about the future of Bitcoin price action published following the 200MA update has attracted 14,000 responses. 

PlanB’s Bitcoin price Twitter survey as of Sep. 23

PlanB’s Bitcoin price Twitter survey as of Sep. 23. Source: PlanB/ Twitter

The majority — 59.1% at press time — is bullish about Bitcoin over the next year, and also favors BTC over other cryptocurrencies. In total, 92.8% of respondents are bullish when it comes to BTC/USD.

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