Bitcoin (BTC) is in need of reclaiming a key moving average in order to regain its bullish status, according to a popular analyst. In a recent analysis, CryptoCon cautioned that optimism among bulls about the $26,000 BTC price support holding may be misplaced.
The 20-week exponential moving average (EMA), currently at $27,750, is seen as the line in the sand for Bitcoin’s uptrend. CryptoCon emphasized the importance of reclaiming this moving average, drawing a comparison to Bitcoin’s rebound from the 2018 cycle lows. It was the successful reclaiming of the 20-week EMA that set the stage for Bitcoin’s remarkable climb to its all-time high of $69,000 in 2021. However, an unsuccessful challenge to the moving average in the past led to a firm rejection.
To support this analysis, CryptoCon presented a chart illustrating the similarities between current price action and the 2019 rebound. The chart highlighted the retest and subsequent successful reclaim of the 20-week EMA.
While some bullish arguments have focused on Bitcoin’s relative strength index (RSI) readings, CryptoCon questioned their validity. These readings have been at multi-year lows on various timeframes, suggesting that Bitcoin is currently undersold. However, CryptoCon expressed skepticism, stating that the oversold RSI indicates weakness rather than strength. Additionally, Bitcoin is trading below healthy support levels and showing early signs of a market structure reversal, which further supports the bearish outlook.
CryptoCon concluded that even the most bullish analysts may start to doubt themselves at the real bottom. While remaining optimistic, CryptoCon also stressed the importance of taking a realistic approach based on long-term data.
It is important to note that this article does not provide investment advice or recommendations. Readers are encouraged to conduct their own research and assessment of the risks involved in making investment and trading decisions.
This analysis highlights the critical level that Bitcoin needs to surpass in order to regain its bullish momentum. The comparison to past market behavior provides valuable insights into the potential trajectory of Bitcoin’s price. However, it is crucial for investors to consider multiple factors and conduct thorough research before making any investment decisions.