Currently, Bitcoin is trading close to $9,000 that shows short term bearish trend. It went two times below $9k this week. But crypto analysts still believe that there are many chances that Bitcoin may show a breakout soon.
In the past two months, the crypto community has witnessed that top digital asset touched values for eight times below $9k, but every time, it soared with bullish momentum.
Crypto analyst with username @CryptoKea shared a graph that tried to prove that bullish trend can still intact if Bitcoin would become successful in reclaiming the 200-day displaced moving average (DMA).
“BTC broke the lower band of the bullish channel a few days ago. Is the bullish uptrend at jeopardy? Imho, as long as price recovers back above 1.1x the 200 DMA soon (currently at $9,234 and rising), bull trend should stay intact.”
Crucial Level: $9,200
Since the year biggest crash in mid-May, level $9,200 has remained very crucial for Bitcoin as strong support. In the short-term scenario, the level $9,000 is also important besides $9,200. If both levels fail to support price value, these may become as strong resistance levels and will result in a correction. But this will happen in a rare case.
At the start of May, the value was at a peak of 200 DMA, which triggered price value to reach $10,440 but for a short time.
“BTC is holding steady above 1.1x the 200 DMA, which is the support line of the bullish channel (yellow). If price is ready for a sustained, bullish uptrend and history were to repeat, price could remain in this channel for >1 yr, current range: $8.8k-$13.6k,” the analyst said at that time.
However, price, at press time, is at the brink to move below $9k, but there are many authentic factors that are in contradiction. Institutional adoption of Bitcoin has set new records as Grayscale bought all new BTC supply.
The accumulation of coin on the part of investors is also at peak value as most of the whales have not moved their digital assets for a long time.