The 50-day moving average (MA) (red line in the chart) is a widely used indicator that helps identify the trend direction and acts as a dynamic support or resistance level. Here is how it applies to the current chart:
Current Overview:
Support Role:
The 50 MA is closely aligned with the green support area, reinforcing this level as a strong dynamic support.
The price has historically respected the 50 MA as support, evidenced by previous bounces near this level.
The upward slope of the 50 MA indicates that Bitcoin is still in a bullish trend on higher timeframes.
The bullish structure remains intact as long as the price stays above the 50 MA.
The convergence of the 50 MA with the green horizontal support area (~$92,500โ$95,000) adds significant strength, making it a key level to monitor for a potential bounce.
Bullish Case:
If the price is above 50 MA, it could act as a launching pad for the next upward move.
A bounce off this level could target the $102,500 or $110,000 levels.
Bearish Case:
A breakdown below the 50 MA and the green support area could signal a trend reversal or a deeper correction.
The next support after this would be at $85,000โ$90,000 or the lower range around $77,500.
Key Points:
The 50 MA is a crucial support level at the moment. Traders should closely monitor price action near this level. A strong bounce could confirm a bullish continuation, while a breakdown could indicate increased selling pressure.
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Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Always conduct your research and consult a financial advisor before making investment decisions.
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