Bitcoin Price’s 200-Day Median Flipped to Bullish, Next Accumulation Cycle Building Up
Bitcoin is yet again up nearly 3 percent at $5,156, as per Coinmarketcap. After getting corrected lower to around $4,890, BTC price has started surging and going well above $5k. However, according to experts, this is the zone where Bitcoin will start its next accumulation.
This rally saw Bitcoin futures on CME having a record trading day on April 4 as they reached an all-time high of more than 22.5k contracts (the equivalent of 112.7k BTC) that at $5k per BTC amounts to $562k. This volume broke the previous record of over 18.3k that was registered on February 19.
Bitcoin analyst David Puell took to Twitter to share that the 200-day median of Bitcoin has turned bullish sitting at $4k that in the next few months would start serving as support.
“Bitcoin's 200-day median, which just flipped to bullish and should serve as support in the next few months (currently at 4k).”
He further noted a scenario while presenting a chart that shares the first accumulation zone between $3,385 and $4,112 levels. This accumulation has been going on since mid-November when price first started sliding down and hit yearly low at around $3,200 in mid-December.
Afterward, for the past three months, Bitcoin has been stuck below $4,100 that has been the opportunity to pile up on Bitcoin. Now, the re-accumulation zone would start from $4,112 to $4,998.
Analyst Josh Rager also shared an accumulation chart pointing out that in the previous bear market BTC accumulated under the 100 MA and was supported by the 200 MA. This time as well, a similar accumulation can happen that means the next few months are of utmost importance. Once this accumulation goes under, that is when the next uptrend would start after breaking above 100 MA.
He further commented,
“Would be neat to see Bitcoin wick below the 200 MA – by that time around it would be $3500 to $3700. It's going to take a while before 4200 breaks (if it even does). That would throw people in a frenzy but if it can't break 200 MA – it's just going to start the uptrend.”
With Bitcoin remaining in the green and slowly inching upwards from $5k, it is likely we would also get to see $6k amidst the rally that has re-injected confidence in the market. However, in the short term, one needs to be cautious as well as crypto traders and analysts are also expecting BTC to move up to $6k only to go back down for new support that could be around $4,200.
What do you cryptocurrency enthusiasts think? You can stay in the micromanaging day trading level or think about bold bitcoin price predictions such as ones from Peter Brandt at BTC being $50-72K in the next 2 years or stay trying to time buying at the bottom.
Live Bitcoin (BTC) Price:
1 BTC/USD =$49,184.4372 change ~ -4.24%