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Bitcoin ‘overconfidence reigns’ but bulls must reclaim $27.8K — Trader

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Bitcoin (BTC) must reclaim one key transferring common to “regain its bullish standing,” one widespread analyst argues.

In evaluation issued to subscribers on Aug. 22, CryptoCon warned that bulls remained too optimistic over $26,000 BTC value assist holding.

20-week EMA as BTC value line within the sand

Bitcoin staged a modest restoration above $26,500 round its newest each day shut, information from Cointelegraph Markets Professional and TradingView reveals — however a sober market synopsis says that bulls have far more work forward of them.

BTC/USD 1-week chart with 20 EMA. Supply: TradingView

For CryptoCon, the 20-week exponential transferring common (EMA), now at $27,750, have to be received again as assist to ensure that the uptrend to be protected.

“I’ve been overlaying this transferring common loads not too long ago, however I consider it’s essential for Bitcoin to regain its bullish standing,” he wrote.

The evaluation in contrast present BTC value motion to its rebound from 2018 cycle lows. Then, it took such a reclaim of the 20-week EMA to launch the trail to what in the end turned Bitcoin’s 2021 all-time highs of $69,000.

Previous to that, nonetheless, an unsuccessful problem was met with a agency rejection.

“Worth surfaced the transferring common however couldn’t maintain it,” it said.

“It is extremely vital that Bitcoin each rises above and retests the 20 Week EMA as assist.”

An accompanying chart confirmed the similarities between 2019 and 2023, with the retest and subsequent profitable EMA reclaim circled.

BTC/USD annotated chart with 20-week EMA. Supply: CryptoCon

“All I see is weak spot”

Elsewhere, CryptoCon questioned the validity of the present bullish argument surrounding Bitcoin’s relative power index (RSI) readings.

Associated: Bitcoin halving can take BTC value to $148Okay by July 2025 — Pantera Capital

As Cointelegraph reported, these are at multi-year lows on a number of timeframes, suggesting that Bitcoin total is undersold at present costs.

“I’d like to say that very oversold RSI is an efficient factor however the one factor I can see is weak spot,” he admitted.

“That is mixed with being under wholesome helps, and early reversal indicators in market construction. At the actual backside, I consider even essentially the most bullish analysts shall be questioning themselves. I stay optimistic to be proved incorrect, but additionally reasonable primarily based on long run information.”

BTC/USD comparative chart with RSI. Supply: CryptoCon

Gather this text as an NFT to protect this second in historical past and present your assist for impartial journalism within the crypto house.

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a choice.