Weakened Buying Interest Near 200-Week SMA Suggests Bitcoin's Next Move

Crypto analyst Rekt Capital has observed that Bitcoin's buying interest near its 200-week simple moving average (SMA) has weakened in August. This trend is a departure from July, when Bitcoin rebounded after finding support at this level.

The 200-week SMA has been a crucial support level for Bitcoin, but Rekt Capital notes that buy-side volume has generally declined since March, and the level's strength as a support line has gradually weakened. In fact, he previously outlined a break below the 200-week SMA as his base-case scenario over the medium term.

This development is significant because it suggests that Bitcoin may not be able to rely on this key support level in the future. While it found support at the 200-week SMA in July, the level now appears to be losing strength as a support line.