- Bitcoin plunged beneath the 50-day Simple Moving Average, eyeing the $36,398 – $38,895 demand territory.
- However, long-term investors remain bullish as BTC supply on exchanges touched 3-year lows.
- Violating the support barrier at $34,752 will cancel Bitcoin’s bullish narrative.
Bitcoin retraces after failure to overcome a massive resistance. Nevertheless, investors may expect the alt to rebound from a considerable support confluence and attempt another upward move.
BTC to Reattempt Bullish Rally
Bitcoin gained 40% from 24 January to 10 February, piercing the weekly supply region, stretching between $45,550 and $51,860. However, the upside pause, forming a demand region stretching between $36,398 and $38,895.
The latest rejection near-weekly supply zone might know Bitcoin down towards the demand region, attracting sidelined buyers for the next upswing. Furthermore, the weekly support at $39,481 makes the level lucrative for reversals.
The resulting upside should overcome the weekly supply and form a daily candle close beyond $52,000 to remove any bearish trace. That would also see Bitcoin creating a higher high and kick-start a new upside action. With that, Bitcoin can clear the road towards a significant value level of $60,000.
IntoTheBlock’s GIOM backs the bullish technical viewpoint. The index suggests that the nearest support is sturdier than the resistance zine, indicating an imminent bullish reversal. That way, a rebound from $37K might propel Bitcoin to $44,049. Nearly 939,080 addresses that bought 495,210 Bitcoins tokens are out of money. Since this underwater investors’ zone seems weak, investors might expect an explosive move towards $52,000.
Also, the exchanges supply metric backs Bitcoin price bullishness. The on-chain indicator touched a 3-year low of 2.05 million, showing optimism by long-term holders as far as Bitcoin price performance is concerned. The number of Bitcoin on centralized exchanges plunged by 190K, indicating confidence by these holders.
Though BTC’s long-term picture remains optimistic, bearish threats exist. Bitcoin approaching the $36,398 – $38,895 demand zone highlights potential sell-offs. Intensified selling momentum for a daily close beneath $34,752 will see BTC forming a lower low. That will annul the bullish outlook and catalyze plummets towards the support of $29,100. However, such a move will extinguish selling strength and suggest and suggest a potential full-blown price reversal.
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