Persistent Bitcoin Support Bolsters Bullish Trend Expectations: Analysis by Senior Analyst
Summary:
Bitcoin (BTC) continues to maintain key support levels, boosting optimistic expectations for bullish trends, according to senior analyst Caleb Franzen at Cubic Analytics. Notably, the cryptocurrency is currently situated between the 200-week simple moving average (SMA) and the 200-week exponential moving average (EMA), which have acted as crucial support and resistance since mid-August. Franzen also indicates that recent constructive dynamics indicate improving market conditions and increased bullish probabilities.
Bitcoin (BTC) remains resilient at crucial support levels, which according to a new analysis, bolsters optimism for bullish trends. Caleb Franzen, a leading analyst at Cubic Analytics, highlighted on Oct. 17 that two key moving averages are now establishing the battleground for BTC pricing. Analysis: Persistent Bitcoin Support is "Promising."
Data from Cointelegraph Markets Pro and TradingView reveal Bitcoin precariously placed between the 200-week simple moving average (SMA) and 200-week exponential moving average (EMA). Positioned at $28,277 and $25,744 as of October 18, these two trend lines have been acting as support and resistance since mid-August.
Franzen underscores the importance of this observation on the weekly timeframes, classifying it among several positive indications in the BTC/USD chart. A segment of his post reads, “Despite my defensive leanings, I've remained patient with BTC due to the fact that the price has been using the 200-week moving average cloud as support.”
He pointed out that the bulls continuing to hold the 200-week EMA was a "promising sign." Franzen also highlighted the short-term holder realized price (STHRP), an aggregate on-chain price indicating the last move of coins by less-seasoned investors. The STHRP currently stands at around $26,900, and has gained significant attention this year due to its potential as a market support.
"The price overriding the STHRP, indicative of an uptrend, has historically acted as dynamic support", explained Franzen, bringing data from ChainExposed, an on-chain analytics resource, into the discussion. This fact enhances chances for bullish trends.
Although these indicators are encouraging, Franzen promptly clarified that it did not essentially mean a surge in BTC price action was imminent. "These indicators collectively suggest constructive dynamics at play that enhance bullish probabilities. However, it doesn’t necessarily correlate to surge in numbers; rather it signifies positive developments," he elaborated.
Investigations correlating with these findings have recently been conducted into Bitcoin on-chain behavior. As reported by Cointelegraph, despite brief market disruptions due to volatility, BTC/USD remains up by approximately 6% this week.
With network fundamentals soaring to record highs, speculations are rife about what comes next for BTC's price as it progresses towards the April 2024 block reward halving. Social media trader Moustache continues to draw comparisons between Bitcoin's 2023 performance and that in 2020. A chart shared on X likens the cross-market crash due to COVID-19 in March 2020 with the two-year lows witnessed by Bitcoin after the FTX meltdown in late 2022. Accompanying commentary quizzes if a "major move" could be on the horizon.
This piece does not offer investment guidance or suggestions. Every investment and trading decision involves risk, and readers are advised to conduct independent research before making any decisions.
Published At
10/18/2023 12:08:42 PM
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