Bitcoin (BTC) traders see the price reversal of BTC as the classic resistance stops the Bulls on the track.
200-day moving average continues to lock down BTC prices
Data from Cointelegraph Markets Pro and TradingView show BTC/USD cooling after reaching a new April high of $88,874.
Bitcoin, which found strength at the beginning of the week, raised hopes that gold mimics would move as the latter set multiple all-time highs.
These highs continued on April 22, but BTC price action was, on the contrary, rejected on the significant 200-day simple moving average (SMA).
“An interesting place. Broken over daily 200m (blue) and oblique resistance. So far, we have seen sharp rejections from daily 200mA (purple),” trader Darn Crypto Trade said in an X post along with an explanatory table.
“It’s not fun until the daily range exceeds the low $90,000 range.
The 200-day SMA traditionally forms support in the Bitcoin bull market, but was lost in March as the code faced sell-side pressure when the US trade war began.
Since then, BTC/USD has seen its five-month lows below $75,000, but despite the healthy rebound, some market participants are hoping to bring time with the latest episode of Price Upside.
Among them is fellow trader Roman, who referenced stochastic relative strength index (RSI) values in the “excessive” domain.
“We wanted to show that the last four Stoch RSIs were over-acquired as we approached horizontal resistance, but we saw a 10-15% revision,” he said, adding that such a move “makes totally reasonable” given the downward momentum of the S&P 500.
Daily Probabilistic RSI was at the top of the 0-100 scale on April 22nd.
Bitcoin: “The reversal has begun,” says traders
As Cointelegraph continues to report, other bull market commentaries focus on the confluence of macroeconomic factors driving traditional BTC prices rise.
Related: The US Dollar becomes “novid” – 5 Things You Need to Know About Bitcoin This Week
These include the rapidly weakening strength of the US dollar, the world’s highest ever high M2 money supply, and the delay in response to the gold breakout.
“In the past few weeks I’ve seen a variety of on-chain data and global events. I believe this has begun a reversal of BTC,” concluded trader Cas Abbe in a dedicated X-thread on the topic.
Abbe rejected the idea that the current BTC rebound would become a “bull trap” and point to the recurring Coinbase premium in addition to whale accumulation and macroeconomic factors.
“I think the $74K-$75K zone was the bottom of $BTC. Most ALTs also painted the bottom and we were able to see a sustained gathering,” he added.
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
