Bitcoin’s consolidation in the lower $20K level continues as the leading cryptocurrency has lacked significant momentum to breach this zone.
Rekt Capital believes that the top cryptocurrency should surpass the 200-week moving mean (WMA) given its significant resistance.
The crypto trader stated:
“BTC still remains below the 200-week MA resistance. Until that level breaks, it’s technically premature to assume this is now a sustained relief rally.”
Market analyst Michael van de Poppe shared similar sentiments and said:
“Brief touch of the 200-week MA for Bitcoin. Clear rejection also, no breakout for now. Expecting a bit more consolidation before we break upwards and once we do break the 200-Week MA, acceleration towards $28-30K is expected.”
The 200-week moving average in Bitcoin is a key indicator of the long-term direction changes. It currently stands at $23K to $24K.
According to Ali Martinez, an on-chain analyst, BTC will face significant resistance at $23.2K. He explained:
“Bitcoin overcame all major supply barriers it was facing. The only considerable resistance $BTC has yet to break through to continue advancing further sits at $23,260, where nearly 108,000 addresses are holding over 100,000 BTC.”
The most popular cryptocurrency, Bitcoin, fell 1.8% over the past 24 hours to reach $21,862 in intraday trading according to Reuters. CoinMarketCap.
Therefore, Bitcoin’s present ranging market has been fuelled by tightened macroeconomic factors by different governments to fight runaway inflation.
The Federal Reserve (Fed), for instance, raised the interest rate by 75 basis point (bps), which is the highest increase since 1994.
Green monthly candles, which were last seen in March, have been hard to find on the BTC Market. Rekt Capital pointed out:
“BTC hasn’t experienced a green monthly candle since March 2022. The downtrend has emotionally deprived investors to the point where they’ve become desensitized to the downside and hypersensitive to any upside.”
Blockchain.News reported that despite this, long-term hodlers have not given up on their dreams of selling because they don’t want to sell.