Bitcoin price continues to decline below its 200-week moving average. However, analysts say that retrieving this level is critical. Accordingly, if BTC wants to continue its rise, it has to convert the 200-week MA to support.
How is the Bitcoin price?
The mood in the cryptocurrency ecosystem has become noticeably brighter after a week of gains. This bullish move helped investors to look positively to the future. It also had them pull an eraser on the events of the past two months. Bitcoin price has been moving around the $23,000 support over the past few days, as we reported on cryptokoin.com. Also, recent prices show that BTC continues to stay slightly above the 200-week moving average (MA). The aforementioned moving average contains lows that occurred in past bear markets. However, the debate about the direction of the market continues to flare up. Analysts, on the other hand, share important levels to watch towards the end of the week. Let’s see together.
“BTC should close weekly above this level”
Cryptocurrency analyst Michaël van de Poppe highlighted the importance of trading Bitcoin above the 200-week MA. The market analyst has published a chart showing the main support and resistance zones for Bitcoin. According to Van de Poppe, Bitcoin is again facing critical resistance at $23,500. Also, what happens next will determine the next levels of its price. The hours ahead will decide whether Bitcoin will rise higher and pull back to support at $21,500.
A possible upside break above the $23,800 resistance will clear the way for a rise. Poppe suggests that a rise to $28,000 is among the possibilities in this scenario. However, the analyst says that a breakout of the 200-week MA must also occur for bullishness. Alongside Poppe, market analysis firm Rekt Capital also highlighted the importance of the 200-week MA. According to the firm, BTC needs to make the weekly close above $22,800 for bullishness.
A big move is likely to come
Cryptocurrency trader CryptoGodJohn has published the chart below outlining two possible paths Bitcoin can take. The trader considered the recent price action “a sign of a big move for Bitcoin soon,” John shared: “Breaking up and $24,200. I think we’re stuck between $27,000 and $28,000 pretty quickly. If we start going back into the range, I’m looking for a drop to $20,000. But it can be quite easily invalidated either way.” The possibility of a move in either direction was also posted by Mayne, who addressed the “breaking of the potential range” for Bitcoin. A high above $22,500 has the potential to open the way up.
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