Bitcoin (BTC) has managed to hold onto its gains this week, as traders remain bullish on its price. The cryptocurrency is being supported by a key moving average, with the BTC/USD pair successfully holding the 200-day exponential moving average (EMA) at $27,180. This is seen as positive news, as it indicates that BTC/USD has not experienced a full retrace of its recent gains. The fact that Bitcoin is tightly hugging the 200-day EMA into the monthly close is also encouraging for traders.
While there have been some hourly candles closing below the 200-day EMA, these have not been enough to trigger a significant breakdown in price. Popular trader Moustache believes that Bitcoin’s price has bottomed and does not expect to see a better entry point. This contrasts with the bearish market sentiments expressed by other well-known sources, many of which are predicting a return to $25,000 or lower.
Fellow trader Jelle is also optimistic about Bitcoin’s price, noting the significance of the cryptocurrency holding above $27,000. He sees the recent spike up and shallow retrace as a positive sign, indicating that BTC/USD could move higher. In fact, Jelle has plans to go long on Bitcoin in preparation for it to surpass its local highs.
However, not all outlooks for Bitcoin’s price are as positive. Some market indicators suggest that the cryptocurrency could face resistance at certain moving averages that it has yet to reclaim from earlier in the month. Analyst Rekt Capital points out that these moving averages are now acting as resistance levels. Material Indicators, a monitoring resource, warns that Bitcoin could come full circle and will need a resurgence in bullish sentiment to achieve a higher local high. The resource identifies $27,760 and $24,750 as the upside and downside levels to watch.
It is important to note that this article does not provide investment advice or recommendations. Investing in cryptocurrencies involves risks, and readers should conduct their own research before making any investment decisions.
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