Bitcoin closed the week at $3,414. This is the lowest weekly close since December 10, 2018, which is a very bearish sign. The bear flag Bitcoin was trading in last week has broken down and the price is now being supported by the 200 week SMA at about $3,312.
Bitcoin’s 200 week SMA is unlikely to hold and we expect further selling. This is likely to push the price down to the 127.2% fibonacci retracement at $2,800
Also revealed this week was Fidelity’s plans to launch their Bitcoin custody service for large investors in March. With so much infrastructure being built around Bitcoin, it is only a matter of time before the next bull run must occur.