Bitcoin crosses the 200 daily EMA for the first time since it fell below $40k. There have been multiple attempts at this, but every time, the bears overpowered the bulls at this level. But this time around, things are different as Bitcoin has been able to overcome this important resistance quite easily. On the daily charts, the 200 daily EMA was at $38,500, and Bitcoin is currently trading at $39,700. It is important for BTC to stay above this level, have a daily candle closing near $40k, and have another good day in succession.
This is bullish
You can see on the chart above the last daily candle is currently above the black line. Even the day before yesterday, after the huge short squeeze, Bitcoin did cross the level but couldn’t close above the same. And the following day, the price dropped again, and we saw quite a hefty consolidation. At the time of writing this article, there is still an hour left for the daily candle closing, and it’s important that BTC stay above this level.
The chart also clearly shows that Bitcoin got rejected twice from this level during the initial days after the crash. And the rejection was followed by consolidation to nearly $30k, which was overwhelming for the bulls. So, yes, this is quite bullish, and Bitcoin does have a chance to start a rally from here on. Some other key resistance is also present after $42k. One of them is the 200 day MA which is at $44,500, which will also pose a danger to the upcoming rally. It is important that Bitcoin clears that level and makes it support.
All technical analysis shows that the market is bearish until we are moving above the 200 daily EMA, and that has finally happened. What are your thoughts on the closing of Bitcoin above this critical level? And do you think as Bitcoin crosses 200 daily EMA another phase of the bull run could start? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Amazon won’t accept crypto: A probable bull trap!
