Bitcoin trades just above its weekly 50-period moving average after a rejection at the weekly MA 100. A crypto analyst says the same setup appeared in 2023, before a rally that more than doubled the price. The source puts the level to hold at $75,500.
BTC is trading around $76,000, just above its weekly 50-period moving average at roughly $75,500. A crypto analyst says the weekly chart shows a pattern that last appeared in 2023, shortly before a rally that more than doubled Bitcoin's price.
The price was rejected from the weekly MA 100 near $87,400, which leaves it between the two lines. According to the analyst, Bitcoin sat in the same spot in 2023, consolidating for months before it broke out and started a new bull phase.
How the 2023 setup played out
Between mid-March and mid-October 2023, the price stayed largely in a range of roughly $24,000 to $28,000. Then, on October 23, 2023, BTC pushed through its July high of around $31,800.
A day later, Bitcoin topped $35,000 for the first time since May 2022. It closed 2023 with a gain of roughly 156%. On January 10, 2024, the SEC approved 11 spot Bitcoin ETFs, and by March 2024 Bitcoin was setting fresh all-time highs above $73,000.
Key support and resistance levels
The first line of defense is the weekly MA 50 at about $75,500. If that fails, the next major support is the weekly MA 200 at around $67,800.
On the upside, the first hurdle is $82,000, followed by the weekly MA 100 near $87,400. According to the analyst, a reclaim of the MA 100 that holds would open the door to another major rally, as in 2023.
Momentum looks cooler. The weekly RSI sits near 50, and the analyst sees room for it to dip toward 44 before Bitcoin makes its next move higher.
Source: Bitcoinist
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