Rekt capital, a crypto trader and analyst, says that the 200-day EMA for bulls is a critical level at $47,000.
According to CoinGecko data, Bitcoin hit a high point of $45,300 Tuesday before falling sharply to $43,400 on Tuesday.
Bitcoin (BTC), has dropped from the intraday highs reached Tuesday at $45,300 and is currently hovering around $43,450. The momentum gained since the weekend has slowed down after the bounce low.
However, with sentiment bullish about the flagship cryptocurrency’s short-term price movement, crypto analyst Rekt Capital says another melt-up is likely.
According to him, the BTC/USD pair is looking for a key level. If it reaches that level and turns into support, it would indicate that long-term investors are optimistic. This optimism could spur further buying and help bulls push for the psychologically significant level of $50,000.
Here’s what the pseudonymous analyst notedAs the BTC price flirted around $45,300, it became a resistance.
“BTC is slowly approaching the 200-day EMA (black) Flip the EMA into support and this will be an indication that long-term investor sentiment is shifting back to being bullish on Bitcoin.”
He shared the chart below, which shows Bitcoin’s recovery after last month’s rout and the potential for a breakout to $47,000.
Chart showing BTC’s rebound towards the 200 EMA. Source: Rekt Capital on Twitter.
This level corresponds to the 200-day exponentially moving average, which Rekt Capital identifies as one of key indicators of long term investor sentiment towards Bitcoin.
“The black 200 EMA is a long-term gauge of investor sentiment towards BTC. The 200 EMA currently represents a price point of ~$47000,” he said.
The analyst remains optimistic about BTC/USD but he points out the chart and 200 EMA versus current prices levels to show that bulls may need to struggle a little before they can turn the line into support.
#BTCis trying turn the black level in support & break into $43100-$51900 range
The blue 50-week EMA resistance is just above this black level$BTCIt is necessary to convert both blue EMA and black EMA into support for a rise in the $43100-$51900 price range#Crypto #Bitcoin pic.twitter.com/H7PYXbgGfp
— Rekt Capital (@rektcapital) February 8, 2022
If Bitcoin price turns $43k into support and breaks above the supply zone above $45k, then it’s likely to continue higher with the highlighted range ($43,100-$51,900).
Crypto analyst Scott Melker holds a similar view and says that the benchmark crypto has “tapped” the zone. He is optimistic about the BTC/USD exchange rate above this level.
$BTC#BitcoinYou are playing the levels perfectly.
The next level was $45,478, which was tapped close to the dollar. It was clear sailing above. pic.twitter.com/GGb9pm8TKK
— The Wolf Of All Streets (@scottmelker) February 8, 2022
Bitcoin can also be paintedSimilar recovery to that experienced during the last correction (May-2021), with the Bollinger Band breaking higher on the weekly log. BTC reached its record high of $69k in the last time this happened.
The bitcoin price rose more than 12 percent in the last week.