- June 12, 2023
- Posted by: [email protected]
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Bitcoin’s behavior regarding the 200-week moving average at $26,500 has left the market uncertain. As Wall Street opened on June 8, Bitcoin experienced reduced volatility while market participants awaited signals. Data from Cointelegraph Markets Pro and TradingView revealed that BTC/USD was hovering around a significant long-term trend line near the $26,500 mark.
After experiencing brief volatility surrounding industry news events, Bitcoin returned to sideways trading after rebounding from its lowest point in three months. Now, all eyes were on the 200-week moving average (WMA), which had become a crucial point of focus.
DecenTrader, a trading suite, emphasized the importance of the 200WMA in their analysis, stating, “We are currently sitting right on the 200WMA.” They took a cautious approach to short timeframes, warning about an increasing long/short ratio on exchanges and the possibility of selling pressure during the U.S. trading session.
Prominent traders, including Crypto Tony, remained on the sidelines until a clearer trend emerged. Crypto Tony shared his perspective on Twitter, stating, “This is the structure I am currently going by on Bitcoin, and I remain out of a position while we are mid-range. There’s no point rushing into entries when things are not crystal clear. We had a good short before, now we prepare for the next entry.” He also provided a chart indicating a potential downside target in a “support zone” just below $26,000.
Another trader, Jelle, echoed a similar sentiment, mentioning that Bitcoin’s consolidation and falling wedge pattern were not particularly interesting until a breakout occurred.
On a more optimistic note, traders like King La Crypto anticipated a potential repeat of the upside movement witnessed in early March, which led to Bitcoin reaching highs of $31,000. However, a clear trend was yet to materialize.
Before the Wall Street opening, the notable weakness in the U.S. dollar provided a potential reason for optimism in the crypto markets. The U.S. Dollar Index (DXY) had fallen to its lowest point in several days, targeting support from the monthly open and late May. Traders such as Mikybull Crypto saw a correlation between the Dollar Index and Bitcoin, suggesting that this could play a role in shaping Bitcoin’s price movements.
Overall, the market remained uncertain about Bitcoin’s trajectory, with traders closely monitoring the 200-week moving average and searching for clearer signals before making decisive moves. The weakness in the U.S. dollar added to the speculation surrounding Bitcoin’s potential performance.
