Bitcoin (BTC) may have recovered strongly in recent days, but the road to new heights is only the beginning, and new analysis shows that it is far from reliable.
In a Twitter debate update on February 9, the popular trader and analyst Rekt Capital identified two main goals for BTC / USD to recover in support of the bulls.
Important Bitcoin macro resistance levels are now in place
Despite a 13% weekly gain on Wednesday, Bitcoin is still far from the November high of $ 69,000.
For Rect Capital, long-term BTC / USD sets in the range of $ 28,000 to $ 69,000, corresponding to the 2021 high and record open, respectively.
There are two moving averages in the middle of these two prices, and so far Bitcoin has not yet rebuilt them again as support levels. He argues that in order to have another chance to overcome the heights, it must become a reality.
“These two exponential moving averages in the bitcoin bull market will now act as resistance,” he summed up next to the chart.
“They are the center of a macro area that both need to recover in support of BTC to enter the upper half of the macro area.”
The two moving averages in question are 21-week and 50-week exponential moving averages.
The annotated BTC / USD chart shows moving averages. Source: Rect Capital / Twitter
At the moment, the “golden cross” is not visible
By moving to a shorter time frame and getting rid of the recent bitcoin death cross, the building on the daily chart has not yet shown input signals.
Related: Bitcoin Starts Correction After Rejection of $ 45,000 – Where Can the Next BTC Price Stop Come From?
As the 50-day moving average crossed the 200-day moving average, fatalities often signal the start of a longer downward trend.
Its authenticity is still hotly contested, but the opposite – the construction of a “golden cross” – has traditionally been hailed as proof of market power.
However, a look at the daily chart this week shows that the 50-day moving average has not yet begun to tilt higher to match the 200-day counterpart, according to data from Cointelegraph Markets Pro and TradingView.
This week, however, the BTC / USD pair broke the 50-day trend line for the first time since the November record.