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- If Bitcoin closed above the 200-week MA, it could be a sign of bullish momentum, while closing below the 21-week MA could keep BTC in the range of $25,000 to $28,000.
- Crypto analyst Ali Martinez proposed a trading strategy based on the relative strength index (RSI) levels on four-hour timeframes, which had been oscillating between 30 and 75 since late August.
The world’s largest cryptocurrency Bitcoin (BTC) has come under selling pressure amid the rising 10-year US Treasury yields and uncertainties in the traditional financial markets. Although the Bitcoin price made a bullish attempt to move past $28,000, it couldn’t sustain above it as bears struck once again.
Discussing the current situation, on-chain monitoring source Material Indicators expressed no surprise. They pointed out that their proprietary trading tools had already alerted them to the possibility of a fresh downturn, and they suggested that this chain of events might repeat.
A post on the platform stated, “If you didn’t anticipate this rejection, it might be time to reassess your tools because both technical analysis (TA) and Trend Precognition indicated a high likelihood of rejection.” It also added, “This doesn’t mean we won’t witness another attempt, as we probably will.”
Keith Alan, the co-founder of Material Indicators, looked ahead to a possible trading range for BTC/USD. He noted that the current spot price zone had previously been a site of crucial support and resistance flips in past bull markets. Alan further added:
Bitcoin Price To See Upside Breakout
“So far, Key Moving Averages are serving as strong technical resistance (and support). Breaking this range to the upside is a possibility this month. If it happens, a lot of people are going to get rekt along the way,” he told X subscribers.
“A close above the 200-Week MA would fuel bullish hopium. A close below the 21-week MA keeps BTC ranging between $25k – $28k until something breaks.”
As of the present moment, the 200-week moving average (MA) and the 21-week MA were positioned at $27,970 and $27,868, respectively.
On a more optimistic note, Michaël van de Poppe, the founder and CEO of trading firm MN Trading, expressed confidence that Bitcoin is well-prepared to challenge the $30,000 resistance level. Poppe further added:
Holding above $27,200 would be substantial for upwards continuation, but preferably is a retest at $26,700–$26,900 before we’ll continue the rally to $30,000. Sentiment flipped quite fast.
RSI Levels to Watch for BTC Price Bottom
Meanwhile, Ali, a well-known trader and commentator, shared a Bitcoin price trading strategy that he claimed had successfully identified recent local highs and lows.
This strategy revolved around monitoring the relative strength index (RSI), specifically on four-hour timeframes, which had oscillated between approximately 30 and 75 since late August.
Presently, the RSI is positioned at 51. The accompanying commentary emphasized the importance of patience, suggesting that it might be prudent to wait for the RSI to drop below 30.35 before considering a dip purchase.
Ali also provided a chart illustrating a classic “sell” signal that occurred at the beginning of October, hinting at a potential upcoming “buy” signal and a local Bitcoin price low.
