The price of Bitcoin has recently resumed trading above the daily 200 exponential moving average (EMA). This positive movement opens the path to further upside action as the cryptocurrency gets closer to the daily 200-moving average (MA). These indicators are important as they help determine whether Bitcoin can continue to maintain the existing upward trend.
Daily 200 EMA and MA as Key Resistance Points
At press time, Bitcoin was hovering around $60,175, close to the important resistance of the daily 200 EMA and the daily 200 MA. The daily 200 EMA is reckoned as the key support level as Bitcoin regained ground above it. Historically, 200 EMA has been acting as support during upward and downward trends, signaling market confidence.
#Bitcoin Trading back above the Daily 200EMA and making its way towards the Daily 200MA.
— Daan Crypto Trades (@DaanCrypto) September 18, 2024
That roughly matches up with the local highs at ~$65K which is needed to breach to make a local higher high and flip the market structure back around. pic.twitter.com/u9eFBJMGql
According to a crypto analyst, the next level Bitcoin aim is the daily 200 MA positioned close to $63,973. The 200 MA level can be considered a resistance level and needs to be breached to form a higher local high in the Bitcoin price. This is an important level to watch because crossing the 200 MA could mean a switch of market structures. Based on the analysis, the price needs to rise above $65,000 in order for the structure of the market to go from bearish to bullish.
Bitcoin Poised for $128K Surge with Cup and Handle PatternMarket Structure and Local Highs
Bitcoin’s previous local high is near $65,000, and according to the daily chart, it coincides with 200 MA. A push beyond this level would confirm a higher high hence changing the direction of the market sentiment. Bitcoin’s path toward the daily 200 MA and beyond depends on its ability to sustain a price above the daily 200 EMA in the short term.
The chart shows some important levels of support identified at $56,530 and $52,997. These levels will be important if Bitcoin pulls back from its current price levels. Above these zones, it will maintain positive market sentiment.
Breaking these resistance zones near the $63,973 and $65,000 levels could indicate a more substantial rally ahead. At the same time, failure to breach the daily 200 MA might result in more consolidation or a possible pullback to lower support areas.
