Will Bitcoin’s Price Rise Above the 200-WMA Level? Or it’s a “Bull Trap”.
Bitcoin price rises by nearly 5% over the last 24 hours to reach a 24-hour high at $24,924. Although macro indicators and hawkish comments by the U.S. Fed dragged down Bitcoin’s price from its peak of $25,134 earlier in the day, new data has boosted it again.
The market sentiment is positive with the Bitcoin Fear and Greed Index hovering at 60. Traders are also questioning whether the recent rally is a bullish trap and are taking precaution due to the “Greed” sentiment in the market. Expert investors are paying attention to one thing:
Level to Watch For Bitcoin Price
BTC is currently trading at $24,585. The market will gain momentum if it surpasses the $25,000 psychological level. Investors must be aware of a key level that will confirm bullish momentum: the 200 Weekly Moving Average (WMA).
The 200-WMA indicator is one of the most powerful indicators that traders use to identify long-term changes in Bitcoin’s direction. Resistance at 200-WMA (which is just above $25,000.) caused the recent drop in Bitcoin price.
Bitcoin Price in the Weekly Timeframe If Bitcoin rallies above $25,000, and holds above that level, a major bullish rally is likely to follow. It’s also a strong resistance, so breaking above this level will be difficult.
The RSI at 60 indicates strength in Bitcoin’s price, and Bollinger Bands are expanding wider. These indicators are bullish on Bitcoin, signaling a price rally above $25,000
Also read: Bitcoin Price Bullish to Hit $30K, Predicts on-Chain Data and Crypto Analyst
Macro Indicators Impacting BTC Price
After hitting a peak of 104.67 within the last 24 hours, the U.S. Dollar Index (DXY), dropped to 103.88. A further decline in the U.S. Dollar strength will lead to a greater upside move in Bitcoin prices.
Oil prices and the yield on U.S. 10-Year Treasury bonds are also falling. It will force the U.S. Federal Reserve not to raise interest rates and announce a pivot later.
Also read: Elon Musk promises to soon monetize Twitter user content, Dogecoin To Pump
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The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.