Crypto trader and analyst Rekt Capital says the 200-day EMA is a key level for bulls, currently around $47,000.
Data from CoinGecko shows Bitcoin reached a high of $45,300 on Tuesday before retreating sharply to the $43,400 area.
Bitcoin (BTC) has retreated from its intraday highs of $45,300 reached on Tuesday and is currently hugging the area at around $43,450. The bounce low has seen the momentum seen since the weekend look to slow down.
However, with sentiment bullish about the flagship cryptocurrency’s short-term price movement, crypto analyst Rekt Capital says another melt-up is likely.
He says the BTC/USD pair is eyeing a key level, which if reached and turned into support, would suggest the outlook from long-term investors has shifted positive. The optimism could be a catalyst for further buying, likely aiding bulls push for the elusive breakout to the psychologically important level at $50,000.
Here’s what the pseudonymous analyst noted as BTC price flirted with resistance around $45,300:
“BTC is slowly approaching the 200-day EMA (black) Flip the EMA into support and this will be an indication that long-term investor sentiment is shifting back to being bullish on Bitcoin.”
He shared the chart below, which shows Bitcoin’s recovery after last month’s rout and the potential for a breakout to $47,000.
This level represents the 200-day exponential moving average, which Rekt Capital highlights as one of the key indicators of long-term investor sentiment towards Bitcoin.
“The black 200 EMA is a long-term gauge of investor sentiment towards BTC. The 200 EMA currently represents a price point of ~$47000,” he said.
While the analyst is optimistic on BTC/USD, he points to the chart and the 200 EMA versus current price levels to note that bulls might have to struggle a bit before flipping the line into support.
#BTC is trying to turn the black level into support & break into the $43100-$51900 range
However, just above this black level is the blue 50-week EMA resistance$BTC needs to turn both black & blue EMA into support to move higher inside the $43100-$51900 range#Crypto #Bitcoin pic.twitter.com/H7PYXbgGfp
— Rekt Capital (@rektcapital) February 8, 2022
If Bitcoin price turns $43k into support and breaks above the supply zone above $45k, then it’s likely to continue higher with the highlighted range ($43,100-$51,900).
Crypto analyst Scott Melker holds a similar view and says that the benchmark crypto has “tapped” the zone. He is positive about BTC/USD price above this level.
$45,478 was the next level marked, tapped almost to the dollar. Clear sailing above. pic.twitter.com/GGb9pm8TKK
— The Wolf Of All Streets (@scottmelker) February 8, 2022
Bitcoin has also painted a similar recovery as that seen during the last correction (May-July 2021), by breaking higher from the lower Bollinger Band on the weekly log. The last time it happened, BTC rallied to its all-time high of $69k.
Bitcoin price is up more than 12% this past week.