Bitcoin 'overconfidence reigns' but bulls must reclaim $27.8K — Trader
Bitcoin needs to reclaim the 20-week exponential moving average (EMA) at $27,750 in order to regain its bullish status and continue its upward trend, according to analysts.
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Posted 8/24/2023, 6:43:55 PM
cointelegraph.com
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Crude oil prices are expected to continue consolidating just above the 200-Day EMA, with the 50-Day EMA below it, leading to questions about the market; the possibility of breaking above the shooting star formed on Monday could allow for a move towards $85, while breaking below the moving averages could result in a drop to $75 due to noise from OPEC countries cutting production. The Brent markets also show signs of negativity but are supported by the 200-Day EMA and the 50-Day EMA, with potential to reach the $90 region; attention should also be given to the US dollar's influence on the market.
Bitcoin remains on track for a massive bull cycle despite recent price decline, as indicated by broader indicators of its price patterns and the use of logarithmic growth curves. The 200-week moving average is seen as less significant as a key price support level for Bitcoin, and the analyst is also looking for an entry point for Ethereum.
Bitcoin pulled back from its all-time high above $28,000 as investors analyzed the implications of Grayscale's court victory against the SEC, with the cryptocurrency dropping 2% to $27,240, while Ether decreased 1.7% to just above $1,700, leading to a decline in the broader crypto market.
Bitcoin faced resistance at the 20-day EMA, indicating that bears are guarding this level, but the failure of bears to challenge the $24,800 support suggests selling pressure may be weakening, with a potential recovery towards $28,143 if the 20-day EMA is surpassed; meanwhile, Ethereum is at risk of a breakdown below $1,626, Cardano shows indecision between bulls and bears, and Dogecoin remains range-bound between the 20-day EMA and $0.06.
Bitcoin could experience one final correction of up to 10%, according to crypto analyst Michaël van de Poppe, who advises long-term bulls to see it as an opportunity to increase their BTC holdings. However, if Bitcoin manages to stay above the 200-week EMA, it could continue to move upwards.
Bitcoin's weak performance and its potential "double top" structure raise concerns of more downside, with predictions of new local lows; however, there are indications that Bitcoin may experience a major shakeout before rebounding to "fair value" and the 200-week EMA near $25,600 may offer some optimism; debate ensues over the possibility of Bitcoin filling the $20,000 CME futures gap; liquidity levels on BTC/USD markets continue to increase, adding to bearish predictions; ahead of the Federal Reserve meeting, the United States Consumer Price Index (CPI) data release on September 14 brings potential volatility to the market and may impact crypto market expectations.