- Bitcoin is currently at a stalemate, with analysts predicting that two vital moving averages will make or break the bull run
- BTC’s newest support zone will depend if bullish buyers will keep at it at the current price zone of $20,000 to $24,000 or return to $16,000
- The 200-week MA is a valid reference once again as BTC has proved its support line there since June
Bitcoin (BTC) has been on a long, bullish run that the market has not seen for a long time. In January alone, BTC reclaimed 40% of its losses, from $15,700 to $24,000. Many analysts have speculated that the cryptocurrency is soon due for a new correction. After all, no share keeps up with the green candle for long.
Twitter and Reddit saw huge discussions regarding the next move from the king of cryptocurrency, with members having mixed reactions. Ultimately, it will depend on two key moving average (MA) indicators: the 50-week and 200-week MAs.
Initially, both signals became invalid after the FTX fallout of November 2022. However, now that Bitcoin has bounced up from its lowest price since late 2020, it is crucial that BTC will hold the line for the 50W and 200W indicators.
On a positive note, the statement from the US Federal Reserve regarding the lesser pressure from inflation (or, as the chair calls it, “disinflation”) has brought an optimistic vibe for both crypto and stock markets. This could mean the bear market phase is almost over, and bullish buyers are returning to the space.
However, if BTC fails to hold the line at the $20,000 to $24,000 line, the price may go back to $18,000 or lower.
TradingView showed valid data, with the most rational traders showing the following possible actions. So far, BTC has no reason to stop at the current price or lower than it used to be before December 16. Instead, the next movement will depend on “toppy signs” and “wild cards,” according to veteran analysts.
What the ‘Death Cross’ Means for the Market
In trading, two prominent movements determine the next rally of a price: the golden cross and the death cross.
The golden cross is an intersection between two MAs that suggest the price will spike to new heights. A death cross means the price will come crashing down until it hits bottom.
According to Keith Alan, co-founder of Material Indicators, BTC is heading to the death cross on the weekly chart. The “toppy” signs of the price showed resistance and indicated three resistance levels. In most cases, the third one is a red flag, showing that the price will stoop down again.
However, it can continue upward if a wild card comes out of nowhere in the news, which could cause massive buy orders for BTC. In the meantime, all that everyone can do is watch the next move.
