Bitcoin is nearing its 720-day simple moving average, a historically significant support level, currently around $86,000. This development is seen as a potential entry point for long-term investors using the dollar-cost averaging (DCA) strategy. Historically, this moving average has acted as a robust foundation during previous market cycles, often preceding major bull runs.
Recent data indicates a decline in network growth and reduced exchange deposits from large holders, suggesting a potential supply shock. These factors, combined with the technical setup, create a compelling narrative for strategic accumulation. However, investors must consider macroeconomic risks, such as geopolitical tensions and central bank policies, which could impact Bitcoin's price despite positive on-chain signals.
Bitcoin Approaches Key 720-Day Moving Average, Signaling Potential DCA Opportunity
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
