Bitcoin continues to remain below a key moving average, which is “not a bullish sign,” declared trading suite Decentrader, but signs of a rebound seem to be here.
The King of Crypto has now spent close to a month below its 200-day moving average (DMA), which should be worrying, comments Decentrader, and external factors, like geopolitical sentiment, doesn’t help the sentiment very much.
“Bitcoin has kept the market on its toes as it continues to range between weekly support at $32,000 and near term resistance of the 200DMA currently at $42,000. Uncertainty after the recent crash and fears around President Biden’s announcement at the G7 Summit this coming weekend around how the US will tackle cryptocurrency in relation to recent ransomware attacks, are holding price down for now.”
Nevertheless, some measures of on-chain strength imply that we are getting closer to a bull market again.
“We received the same signal yesterday, suggesting that $BTC price was oversold relative to active addresses on-chain and could now be ready to bounce back over the coming weeks,” the update mentions.
Also highly possible is a rally back to the stock-to-flow trajectory line, which PlanB predicts would be a “surprise” if it didn’t happen. Still hoping that BTC/USD will reach $100,000 in 2021, Decentrader predicts it is only a question of a couple of months until Bitcoin gets back on track.
“While we may not rally so hard and fast this time, fundamentally nothing has changed with how Bitcoin works, nothing is broken, we are just experiencing a lot of bad media coverage after a strong rally at the start of the year. So we may well see price make its way back up to the stock to flow line in the coming months. This would mean new all-time highs for $BTC before the end of this year, as the Stock to Flow line is currently sitting at $85,000,” concluded the company.