Last Bitcoin support levels above $20K come into play as BTC price faces ‘time of uncertainty’

Bitcoin (BTC), which may still reenter $20,000, could offer a solid buying opportunity in the coming weeks, according to a new report.

Decentrader, a trading platform, provided the latest market update on February 24, detailing the last areas of support for Bitcoin between the current spot price and $20,000.

Nalyst looks at BTC 20-week and BTC 200-week MA to cues

Markets are in turmoil Thursday due to Russia’s military action in Ukraine. Stocks and crypto fell as uncertainty gripped Asia, Europe, and the United States.

Bitcoin has lost 12% in less than 24 hours. However, the worst isn’t over. Reactions to Russia’s offensive continue to flood in, as well as potential financial sanctions.

Decentrader is, as many analysts, very cautious when it comes to trading decisions.

It pays to be clear about your strategy during times of uncertainty like these. Analyst Philip Swift stated that traders will be able to survive if they have clear invalidation levels and strong risk-management.

“For investors who are looking for long-term investment, we are near historic major support levels. Anywhere in this region is likely be a good spot to dollar-cost average over the next weeks.”

Although bulls have never been threatened by previous bear markets, Bitcoin’s 200-week moving mean (WMA) is a clear line of sight for bulls. It currently sits at $20,000 and rising.

Swift believes that a dip below $30,000 is more likely than deviations below the 20 week moving average. This was what Swift said about the March 2020 Covid crash.

The update stated that “Should the price continue to fall, the 20WMA Deviation Bands highlight a zone where Bitcoin could receive support between $29,382 – $25,253”.

“Prices have never strayed so far from the 20WMA since the March 2020 covid crash. However, we were very close during the summer 2021 crash.”

BTC/USD chart showing support level. Source: Decentrader

Although it is difficult to visualize, there are upside targets for Bitcoin’s fortunes in the event of a turn. These include $37,500 or $41,100.

Gold booms as Bitcoiners look on

Decentrader is not the only one who advises traders to not let emotions get the best of them in current circumstances.

Related: A sub $30K Bitcoin price drop would require panic “to a large extent”

Chase, a popular Twitter account, also called for calm action and argued that long-term strategies should not be abandoned.

“Most likely to be volatile headline driven few days ahead. Many would be better off staying flat, including myself. But time will tell. This is a typical trade, but it can be volatile at times. Caution advised,” he said in his most recent update.

1-hour candle chart for XAU/USD Source: TradingView

The battle for digital gold continues, with XAU/USD reaching $1,970, and BTC/USD barely recovering from overnight lows at $34,300.