Bitcoin will have a huge impact on the market if it successfully achieves what its indicators seemed to indicate. Now that BTC is trading at around $ 40,000, analysts are skeptical about what comes next. Popular analyst Michael van de Poppe recently analyzed the cryptocurrency market before exiting to mark important levels that could determine BTC price movement in the future.
Bitcoin Golden Cross
This has been analyzed and discussed in the past as well. In fact, previous analysis has placed the expected Golden Cross (ZK) dates closer to late July and early August – a prediction that now appears to be coming true.
When the 50 MA (moving average) crosses the 200 MA, a death cross (DC) occurs – usually a sign of falling price / strong consolidation. The garbage collector is visible when the opposite happens. While the likelihood of a GC has been grim for most of the month thanks to a weekly rally, this GC could be a reality.
After DC on June 19, 50 MA continued to fall. However, now that the indicator goes up, the GC is closer than before. It also opens up different price ranges for Bitcoin, each of which could support or reflect bullish gains.
#BTCfantastic recovery continues
And so the 50-day EMA continues to skyrocket.
– Rekt Capital (@rektcapital) Jul 28, 2021
Important areas to watch out for
First of all, this is the $ 41,000 level. While many maximalists and investors expect BTC to surpass $ 41,000 in the next few days, the analyst disagreed.
“We’re still operating within resistance … we’re going to get some consolidation before we get any (bullish) continuation.”
This sounds plausible, especially since any rally could result in a small correction, and with Bitcoin, this correction could occur at either of these two levels:
- A drop to 34.5-36 thousand dollars – the higher lows formed in this range will only be the support needed for the moderate growth of Bitcoin.
- A higher low at $ 32.6k is critical support for a $ 40k rally, a higher low could be good support for another rally.
According to Van de Poppe,
“If these 2 zones [ 32.6k/34.5k – 36k ] it would guarantee or at least raise the price of bitcoin. “
Moreover, the analyst also stated that any deviation from these levels could lead to a drop in Bitcoin to $ 26,000. This will confirm the rollout scenario in China.
However, Bitcoin’s on-net metrics seemed to be different from this prediction.
Bitcoin is not controlled by the Chinese
A simple observation of the DAA price divergence shows how BTC managed to finally break a two-month downtrend. This breakthrough signals an increase in retail participation following an increase in miner participation.
According to the change in the net position of miners, miners are buying again as BTC has finally exited the Great Migration phase. These results also highlight the positive market sentiment, which could protect BTC from any major disruption.