Bitcoin bulls must reclaim these 2 levels as 'death cross' still looms
Bitcoin (BTC) faces a sink-or-swim resistance test to confirm its "macro breakout," new analysis says.
In a tweet on Feb. 2, on-chain monitoring resource Material Indicators flagged key levels to flip to support after BTC/USD spiked above $24,000.
In what was ultimately a boon for Bitcoin bulls, the United States Federal Reserve delivered what risk-on traders wanted to hear on Feb. 1.
With Chair Jerome Powell using the word “disinflation,” hopes immediately began to bet on rate hikes ending sooner and easier monetary conditions returning in their place.
The mood was palpable across crypto, with BTC price action reversing an initial drop to see new six-month highs of $24,250 on Bitstamp.
While a subsequent correction took the largest cryptocurrency around $500 lower, the mood has since stayed buoyant.
For the good times to continue, however, Material Indicators believes that BTC/USD must now tackle two trend lines, which have formed resistance for much of 2022.
These are the 50-week and 200-week moving averages (WMAs), and so far, bulls have failed to even retest them, let alone flip them to support.
The 50WMA and 200WMA currently stand at $25,345 and $24,837, respectively, data from Cointelegraph Markets Pro and TradingView confirms.
“Must test key Moving Averages to confirm macro breakout or fakeout,” part of commentary stated.
An accompanying chart showed the state of the Binance order book at the time, with resistance shifting higher to allow spot price to rise with it. As Cointelegraph reported, this is a phenomenon which had already been playing out prior to the Fed event
Continuing, Material Indicators described the subsequent BTC price run-up as a “Herd of Bulls Stampede Through the Gate” in the absence of resistance
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