- August 27, 2023
- Posted by: [email protected]
- Category:
Bitcoin is facing the challenge of reclaiming a crucial moving average to regain its bullish status, according to analysis by CryptoCon. The analyst cautioned that Bitcoin bulls might be overly confident about the support level at $26,000 and emphasized the importance of securing the 20-week exponential moving average (EMA) at $27,750 as support to establish a solid uptrend.
CryptoCon linked Bitcoin’s recent price movement to its rebound from the 2018 cycle lows in a study sent to subscribers on August 22. During the 2018 cycle, regaining the 20-week EMA was a significant milestone that eventually led to Bitcoin’s 2021 all-time high of $69,000. However, an unsuccessful attempt to challenge this moving average resulted in a strong rejection.
CryptoCon stressed the importance of Bitcoin both rising above and successfully retesting the 20-week EMA as support. A chart included in the analysis highlighted the similarities between Bitcoin’s price movement in 2019 and 2023, with the successful EMA reclaim circled.
Additionally, CryptoCon questioned the validity of the bullish argument based on Bitcoin’s relative strength index (RSI) readings, which are at multi-year lows on various timeframes. While low RSI levels typically suggest oversold conditions, CryptoCon expressed concerns about Bitcoin’s market structure, stating that “the only thing I can see is weakness.” The analyst remained cautiously optimistic but emphasized the need for a realistic assessment based on long-term data.
Bitcoin recently experienced a modest recovery above $26,500, but CryptoCon’s analysis suggests that there is still significant work ahead for the bulls to reestablish a strong bullish trend.
