With the 200-day moving average (MA) being a significant indicator used to determine the general market trend, Bitcoin (BTC) continues trading above this line.
Market analyst Ali Martinez confirmed:
“BTC is holding above the 200MA after the TD presented a buy signal (red 9 candlesticks). The bullish formation has yet to gather enough upward pressure to push BTC to $44K. Failing to stay above the $34K support could trigger another leg down to $30K.”
The 200 MA shows approximately 40 weeks of trading, which makes it ideal in trading circles.
Therefore, Bitcoin needs to hold above the $34,000 to avoid dropping below this indicator. The leading cryptocurrency has not yet realized a bullish formation required to trigger a notable upward move.
With investors’ pessimism reaching peak levels, it seems it’s boiling down to a matter of time before Bitcoin realizes a price surge.
Crypto analytic firm Santiment echoed these sentiments and stated:
“Traders appear to be quite doubtful. This negative sentiment has a high probability of fueling further price rises.”
The $38K to $40K area is the level to watch
With the $38,000 to $40,000 level being a high resistance zone, Bitcoin needs to breach it to realize significant upward momentum.
Crypto analyst Rekt Capital explained:
“BTC continues to struggle with $38,500 resistance This is the area BTC needs to Weekly candle Close above to ensure upside beyond $39,000.”
Similar views were shared by crypto trader Scott Melker. He noted:
“Pretty hammer candle (or high wave spinning top, choose). Strong volume, long wick into demand. Not really bullish until >$39,600. Have not had consecutive green wks in months, need confirmation. 2 weeks ago, there was a “bullish candle” as well, but it didn’t work out.”
Therefore, it remains to be seen how Bitcoin plays out in the short term.
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