In the past weeks, the Bitcoin price has entered a long recession period, where it has lost more than half its value, leaving behind the 30% rises we are used to. However, with new buyers found in the $35,000 region, the price reached $40,000 again. According to analysts, the 5% or 10% rises that we are currently experiencing on the third day indicate a positive market where the BTC price has reached above $ 40K again.
Analysts: Staying above the 21-week EMA is a harbinger of possible bull runs
On the other hand, the 21-Week Exponential Moving Average (WEMA) is a critical reference for Bitcoin price. According to analysts, as observed in previous bull runs, staying above the 21-week EMA means possible bull runs.
Apart from all these indicators, the future of upward movements for Bitcoin price is definitely in uncertainty. According to analysts, if the rising price does not find support, the dominance of the green color gradually fades. Commenting on a similar scenario, Rekt Capital explains the situation as follows:
”It is important that the 21-week EMA does not turn into resistance before BTC does not rebound to $40,000 (the price level where 21 WEMA is now).”
Another important trend to note is that the 21-week EMA aligns perfectly with the bottom of the BTC Wyckoff Distribution Range and BTC has not confirmed its distribution in this range at the moment. The analyst also added the following on a chart he shared on Twitter:
To say that BTC is clearly under the domination of bears, the black wedge below must be broken and regressed to the Phase E (the lowest current level to be reached in the image below).
In addition, according to the analyst, it should be noted that the 21-week EMA may turn into support and then resistance, which may lead to the start of a new downtrend in the market.
Analyst: $ 33-42K may be the new home of Bitcoin in the coming weeks
As seen in the chart above, the 21-week EMA is working as support. The 50-week EMA is trying to hold on to Bitcoin price. Rekt Capital summarized this situation as follows:
”Converging EMAs indicate a possible price squeeze. The 21-week EMA can act as resistance and the 50-week EMA will act as support to form a triangle structure.”
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Finally, the analyst stated that this triangle, which is seen between $ 33-42K, may be the new home of BTC in the coming weeks. However, on the other hand, the analyst added that the time spent in the triangle will not last long:
”I doubt that the time to be spent in the triangle that will be formed will last until August. It could also happen in July that Bitcoin can break out of the triangle.”
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