Bitcoin has experienced a significant drop in the last 24 hours, with its value plummeting to $26,200. This level is crucial for the cryptocurrency, as both the 200-week moving average (MA) and the 111-day MA are currently at this value. Analytics firm Glassnode has highlighted how different technical pricing models for Bitcoin may be affecting its price. These models are based on four relevant MAs, including the 111-day MA, the 200-week MA, the 365-day MA, and the 200-day MA. MAs are useful analytical tools for studying long-term trends, as they can smooth out the curve of the quantity and remove short-term fluctuations from the data.
If a break below the current region of support takes place, the next levels of interest will be the 365-day and 200-day MAs. The former represents the yearly average price, while the latter metric is called the Mayer Multiple (MM). The MM has historically been associated with the transition point between bullish and bearish trends for the cryptocurrency. The 365-day and 200-day MAs have recently found confluence, with their current values at $22,300 and $22,600, respectively. This suggests that between $22,300 and $22,600 may be the next major support area for the asset.
At the time of writing, Bitcoin is trading around $26,200, down 4% in the last week. The different Bitcoin pricing models have taken turns in providing support and resistance to the price during different periods of the cycle. The 111-day MA turned into support recently, as the price rebounded off this level during the plunge in March of this year. The 111-day and 200-week MAs have recently come into phase, with both their values standing at $26,200 right now. This is the level that Bitcoin has been finding support at in recent days, so it would appear that the base formed by these lines may be helping the price currently.