Bitcoin Bulls Face Hurdles in Reclaiming Crucial Moving Average, Analyst Warns
Summary:
Bitcoin (BTC) needs to reclaim its key moving average to regain its bullish status, warns an analyst. The 20-week exponential moving average (EMA), currently at $27,750, must be won back as support for Bitcoin's uptrend to be considered safe. Failure to reclaim the EMA may indicate weakness. The article also questions the validity of the bullish argument based on Bitcoin's relative strength index (RSI) readings, which are at multi-year lows. The analysis advises caution and independent research for investment decisions.
Bitcoin (BTC) is in need of reclaiming a crucial moving average in order to regain its bullish momentum, according to a prominent analyst. In a recent analysis, CryptoCon warned that despite optimism surrounding the $26,000 support level for BTC, there is still more work to be done by the bulls. The 20-week exponential moving average (EMA), currently at $27,750, is cited as the key level to retake for Bitcoin's uptrend to be considered secure. The analyst compares the current price action to the rebound from the 2018 cycle lows, where reclaiming the 20-week EMA culminated in Bitcoin's record-high prices of $69,000 in 2021. Failure to successfully challenge and hold the moving average could be seen as a sign of weakness, according to CryptoCon. The analyst also questions the validity of the bullish argument based on Bitcoin's relative strength index (RSI) readings, which have hit multi-year lows across various timeframes, suggesting that the cryptocurrency is undersold at current levels. However, the analysis cautions that despite the oversold RSI, the overall market structure and weak support levels indicate potential weaknesses. The article emphasizes that it does not provide any investment advice or recommendations, and readers should conduct their own research before making any decisions.
Published At
8/24/2023 2:10:57 PM
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