The price of Bitcoin (BTC) is maintaining its gains from this week, with some traders remaining bullish on its price. Data from Cointelegraph Markets Pro and TradingView shows that a key moving average is supporting the lower time frame BTC price action, which is helping to preserve the $27,000 level.
Although Bitcoin has retraced from its recent highs above $28,000, it has not experienced a full retracement of the move. This is seen as positive news by some traders, as BTC/USD is now successfully holding a long-term trend line that was lost as support in August. The 200-day exponential moving average (EMA), currently at $27,180, is providing this support.
Even though there were some hourly candles that closed below the 200-day EMA in August, it did not lead to a significant breakdown. Bitcoin is currently closely following the 200-day EMA into the end of August. Popular trader Moustache believes that Bitcoin will not experience a more significant breakdown, stating, “A lot of people are waiting for a better entry, but I don’t think it’s going to happen.”
While many well-known sources have predicted a return to $25,000 or lower for Bitcoin, there are still traders who remain optimistic. Fellow trader Jelle highlighted the significance of Bitcoin holding above $27,000, expressing the desire for the price to increase further.
The outlook for Bitcoin’s price is divided among traders. Some believe that the current price action needs to reclaim certain other bullish moving averages from earlier in the month in order to continue its upward trend. Others caution that a resurgence in bullish sentiment is needed for Bitcoin to reach a higher local high.
What is the 200-day exponential moving average?
The 200-day exponential moving average (EMA) is a technical indicator that is commonly used by traders to determine the overall trend of an asset. It is calculated by taking the average closing price of an asset over the past 200 days.
Why is holding above $27,000 significant for Bitcoin?
Holding above $27,000 is significant for Bitcoin because it indicates that there is strong support at this level. It suggests that there is buying interest from market participants, which can help to prevent a further decline in price.
What is the outlook for Bitcoin’s price?
The outlook for Bitcoin’s price is divided among traders. Some believe that the price needs to reclaim certain bullish moving averages in order to continue its upward trend. Others believe that a resurgence in bullish sentiment is needed for Bitcoin to reach a higher local high.
Is this article providing investment advice?
No, this article does not contain investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.