Will Bitcoin Price Drop Below $6,700? 200WMA Chart Has The Answer

Bitcoin's 200-week moving average (200WMA) has been rising by around $200 each month and new data shows the current price floor for the benchmark cryptocurrency is $6,700.

In a tweet, PlanB, the analyst who developed the popular Stock-to-Flow (S2F) model, said Bitcoin has never gone lower than the current 200WMA. A chart shared by PlanB showed the price of Bitcoin along with its 200-week moving average. Bitcoin first touched the 200WMA in 2015 and again at the beginning of 2019. The last time Bitcoin's price almost touched the 200WMA was in March 2020 when it briefly crashed to sub-$4,000 amid a crash in the global markets.

If past history would reflect future behavior, then the current 200WMA at $6,700 should represent Bitcoin's price floor and would never go lower, Cointelegraph reported.

"BTC 200WMA never goes down. BTC monthly close has never been below 200WMA," PlanB said in September. At the time, the figure was $6,600.

Meanwhile, whales or buyers of large amounts of Bitcoin appeared to be waiting to buy at around $8,800. "Smart money has their bids sitting at $8800. I expect the bottom will likely be around there," said Cole Garner, an on-chain analyst, as reported by Cointelegraph.

Despite Bitcoin's current stagnant price, sentiment around the benchmark cryptocurrency remained optimistic and bullish. It was helped by various bullish predictions, including PlanB’s S2F model, which implied that Bitcoin will slowly climb to $100,00 and by 2024, trade at an average of $288,000 per BTC. This price target is more than most of the predictions being made about the future price of Bitcoin, with the exception of macro trader Raoul Pal, who said 1 BTC could be worth around $1 million in five years.

Bloomberg remained cautiously optimistic, but last June, its Cryptocurrency Market Outlook predicted Bitcoin would revisit $20,000 by the end of the year.