Bitcoin’s price is holding steady along the 200-day trend line, leading some traders to believe that the worst may be over. The focus in BTC price movement centers around the 200-day moving average as the month comes to a close, and opinions on its future trajectory are becoming increasingly divided.
One trader is optimistic, suggesting that Bitcoin’s price may have hit its bottom. The 200-day moving average appears to be providing support for short-term BTC price action, preventing it from dropping below $27,000. Data from Rollman Capital and Bloomberg confirm this trend.
While Bitcoin has pulled back from its recent highs above $28,000, it has not yet experienced a complete retracement of that move. This is seen as positive news by some observers, as BTC/USD is successfully maintaining a long-term trend line that was lost as support earlier in August. This trend line corresponds to the 200-day exponential moving average (EMA), currently positioned at $27,180. Despite some hourly candle closures below this level in late August, Bitcoin is closely following the 200-day EMA as the month of August draws to a close.
Prominent trader commented, “Bitcoin is back above the daily EMA 200-Line,” expressing optimism about the situation. However, this perspective differs significantly from more bearish views held by many well-known sources, some of which anticipate a return to $25,000 or even lower.
Still, there is optimism among traders, who also emphasizes the importance of Bitcoin staying above $27,000. They view this as a positive sign following an impulse upward, where the price spikes up, experiences a shallow retracement, and holds at a crucial higher time frame (HTF) level. In summary, this sentiment, stating that Bitcoin’s price should “send it higher.”
Bitcoin price outlooks vary widely, with some key bull market moving averages from earlier in the month still acting as resistance, according to trader and analyst. Monitoring resource Material Indicators also cautioned that Bitcoin might need a resurgence in bullish sentiment to achieve a higher local high. They identified $27,760 and $24,750 as the upside and downside levels to watch based on signals from their proprietary trading tools.
Rollman Capital adds that upcoming ETF approvals will be a major driving force for the direction and strength of the price of bitcoin.
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