• Bitcoin (BTC) is currently further below its 200-week moving average than at any point in its history.
• This means that the current bear market is even worse than the March 2020 COVID-19 crash.
• As of Jan. 4, BTC/USD traded around 37% below the 200 WMA, deeper than the -31% retracement in March 2020.

Bitcoin (BTC) has now been trading further below its 200-week moving average than at any point in its history, indicating that the current bear market is even worse than the March 2020 COVID-19 crash. This insight was revealed in a tweet by popular trader and analyst Rekt Capital on Jan. 4.

The 200-week moving average (WMA) is a key trendline which was also present during the 2018 bear market. Bitcoin lost the trendline last August and has since failed to reclaim it. This has led to BTC/USD trading 37% below the 200 WMA as of Jan. 4, deeper than the -31% retracement in March 2020.

The March 2020 crash saw Bitcoin abruptly lose 60% in a matter of days as markets reacted to the first wave of mass coronavirus lockdowns. Bitcoin spent less than two weeks below the 200 WMA at the time, in stark contrast to the current situation.

This news comes after a turbulent year for Bitcoin, with the cryptocurrency crashing from yearly highs of around $20,000 in December 2020 to lows of around $16,800 in January 2021. Despite this, some analysts remain bullish on the future of Bitcoin, with many predicting that the cryptocurrency will eventually break out of its current bear market.

Overall, Bitcoin being further below its 200-week moving average than at any point in its history is a worrying sign for the cryptocurrency. This shows that the current bear market is even worse than the March 2020 COVID-19 crash, and that BTC/USD is trading around 37% below the 200 WMA. However, many analysts remain confident that Bitcoin will eventually break out of its current bear market, and that the future remains bright for the cryptocurrency.