- Bitcoin trading over WMA14 is an indication of a bull market, and every low offers a strategic selling point, and a price correction is heavily supported by investors.
- Bitcoin drops below WMA14 when the market is weak and calls attention where exposure can be managed and price trends closely followed to track trends.
- Falling or approaching the 100 EMA is a generation accumulation area, and the history indicates that it has been succeeded by significant market trends and prolonged rallies.
Market cycles in Bitcoin tend to be consistent, and key moving averages can provide traders some guidance. Knowing where these levels are can be useful to determine optimal buying and selling. Recent analysis explains how looking at these levels can be helpful during volatile times.
Bull Market Signals Above WMA14
When Bitcoin trades above the 14-period Weighted Moving Average (WMA14), the market generally enters a bull phase. Investors often interpret dips as opportunities to increase positions. Historical price behavior shows that corrections toward this average usually encounter strong buying interest.
Merlijn The Trader emphasized in a recent tweet: “Above WMA14: bull market. Dips are for the buying.” This observation reinforces the reliability of the WMA14 as a key market guide. Traders following this framework tend to benefit from upward momentum during these periods.
The WMA14 also aids in identifying short-term pullbacks from trend reversals. Watching price above or below this moving average allows traders to make better decisions in a more disciplined way. Patterns consistently exhibit rallies resuming after a touch near this level.
Caution Zones Below WMA14
When Bitcoin drops below the WMA14, market conditions typically weaken. Volatility rises, and traders must evaluate whether to reduce exposure or hold cautiously. Price declines below this level often trigger sharper corrections.
Merlijn The Trader highlighted this phase as a time to “Sell / survive.” Traders who ignore these signals risk panic selling or substantial losses. Charts across multiple cycles illustrate this behavior consistently.
During these periods, support levels near WMA14 may provide short-term stabilization. However, extended stays below this line usually precede deeper market corrections. Careful observation of these levels allows for measured trading decisions.
Generational Bottoms Near 100 EMA
The 100-period Exponential Moving Average (EMA) serves as a long-term support benchmark. Bitcoin approaching or dipping below this line often represents a prime accumulation zone. Historical data shows strong rallies follow these lows.
Merlijn The Trader described this level as an “all-in zone”, marking one of the most favorable entry points. Traders acting during these phases typically secure positions before major upward trends begin.
Consistency across market cycles confirms the 100 EMA’s value in strategic trading. Investors monitoring this moving average can identify opportunities that may define long-term portfolio growth. Price respect for this level is evident in past bull runs.
