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Bitcoin’s consolidation in the lower $20K level continues as the leading cryptocurrency has lacked significant momentum to breach this zone.
Rekt Capital believes the top cryptocurrency should surge past the 200-week moving average (WMA), given that it’s emerging as a significant resistance area.
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 too, and 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.”
Source: TradingView/MichaelvandePoppe
As a major indicator that shows the long-term changes in the direction of an asset, the 200-week moving average currently sits at around the $23K to $24K level in the Bitcoin market.
This explains why on-chain analyst Ali Martinez believes BTC faces significant resistance at the $23.2K zone. 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 leading cryptocurrency was down by 1.8% in the last 24 hours to hit $21,862 during intraday trading, according to CoinMarketCap.
Therefore, Bitcoin’s present ranging market has been fuelled by tightened macroeconomic factors by different governments to fight runaway inflation.
For instance, the Federal Reserve (Fed) increased the interest rate by 75 basis points (bps), the highest since 1994.
As a result, green monthly candles have been elusive in the BTC market because they were last seen in March. 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.”
Nevertheless, long-term hodlers are not showing signs of throwing in the towel because they are not selling, Blockchain.News reported.
Image source: Shutterstock
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