Judging by recent price movements, bitcoin is approaching an important support level - the 50-day moving average. In the past, this level, which is currently around $94,000, has been crucial to the bitcoin market cycle. However, a break below this level could indicate that the current rally has lost momentum. Bulls should be wary of a decline toward the 50-day moving average.
This level is often the starting point for a reversal, but bull markets have traditionally ended when this level is broken. The rally in early 2024 could be the weakest in bitcoin's history. If the #cryptocurrency fails to hold at this level, its gains will be just 60% of its previous all-time high. For a cryptocurrency that has seen exponential growth in the past, such an outcome is quite disappointing.
Despite these concerns, the fact that #bitcoin has fallen to its 50-day EMA does not necessarily mean that the uptrend is over. A recovery above this level will boost the market's self-esteem and may even trigger a new uptrend. For the market to continue rising, bulls will be looking for a solid recovery above the psychological #threshold of $BTC Conversely, if bitcoin continues to fall below the 50-day EMA, it could test the 200-day EMA or other lower levels around $75,000. This would not only mark the end of the current bull market, but would also set a negative tone for the coming months. Compared to more traditional assets, this may seem small for bitcoin, but a 60 percent rise is still impressive.
Arman Shirinyan is a trader, crypto-enthusiast and SMM expert with over four years of experience.
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