BITCOIN Needs to break the 1W MA100 to confirm bullish extension

31 авг. 2023 г.

Bitcoin (BTCUSD) is rebounding after hitting the 1M MA50 (blue trend-line) for the first time since the June 12 1W candle, which provided a rise. Technically on the 1W time-frame, the trend has been neutral basically with the 1W MA50 (blue trend-line) supporting and the 1W MA100 (green trend-line) as the Resistance, having the July 10 rejection. In fact, the 1W MA100 has been unbroken ever since the May 02 2022 bearish break-out that started the final and more aggressive decline of the Bear Cycle. If BTC reclaims it, technically it should turn into Support until the next Bear Cycle.

At the same time the price continues to respect the 1M Support/ Resistance Zones, which is part of an analysis we conducted in June. The Resistance Zone (red), was previously a Support in 2022 having closed all 1M candles up to April 2022 above it, despite some large wicks that broke much lower but where bought back aggressively in the end. That Support Zone is now the new Resistance Zone, in a similar way as the Resistance Zone of July - August 2022 (green) is now the new Support.

The 1W MA50 is within that Support Zone, in a similar way the 1W MA100 is trading within the Resistance Zone. All this while the 1W RSI is within a Channel DOwn since it hit the 70.00 Overbought barrier on April 10 but is close to the Higher Lows trend-line of June 2022, which is the current Cycle's Support.

As a result, the price is currently within a huge Neutral Zone that although based on the 1M candles closings, a 1W candle closing above the 1W MA100, will be the first bullish break-out signal towards 45900 - 48500, which is the next Resistance Zone ahead and our medium-term target.

But what do you think? Will Bitcoin break above the 1W MA100 (Resistance) or the 1W MA50 (Support)? Feel free to let us know in the comments section below!

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