The crypto market, after a brief retracement, is now in a sideways trade. Bitcoin is the reason from hitting $44,000, ETH is hovering around $3,000. Although most altcoins are trading green with modest gains, some altcoins have dipped to trade red.
BTC Price Action
At press time, the price of Bitcoin (BTC) is finding support at the 50-day simple moving average (SMA) at $42,418 after bouncing nearly 40% from January lows. The bulls face a major resistance barrier in the form of a falling trendline from the December highs of $52,100.
The price movement between the 50 and the 200 SMA, with limited distinct downside and upside levels, indicates that the Bitcoin price is moving sideways.
Investors are looking to cross the 50-day SMA with confidence in order to confirm the pair’s bullish bias. A clear break above the bearish slant line would target $52,000, implying an 18% gain. If the price breaks below the previously shown 50-day SMA, it may retest the $36,000 horizontal support line.
Analyst calls huge breakout
According to a widely recognized trader, if Bitcoin (BTC) can end the week in the dark, the leading crypto asset could be on its way to the moon.C
The veteran crypto analyst tells his 120,000 followers in a new strategy session that BTC charts are looking good so far, but he’s watching a pair of resistance levels that need to drop to drive Bitcoin’s price higher.
Vays also claims that BTC is about to trigger a bullish signal on the Lucid SAR, a directional trend indicator which is a version of the Parabolic SAR.
According to the chart expert, $52,000 is a crucial level which, if reached, could propel BTC to new highs.
“You can see how the $52,000 area is my lunar zone. I expect a huge upside move above this line. This is my line. I don’t need to wait for a new all-time high.
Vays concludes by reflecting on what it would entail if Bitcoin were to be rejected before it reached its target line. It says If we get rejected at the moving average and then fall below that low [about $36,000]the line will move to pass over this new established high.