Bitcoin (BTC) continues to hold key support, with new analysis saying it “raises bullish odds.”
In X (formerly Twitter) Wire On October 17, Cubic Analytics senior analyst Caleb Franzen drew attention to the two moving averages that currently constitute the BTC price battlefield.
Analysis: Long-lasting Bitcoin support is ‘a good sign’
Bitcoin is wedged between the 200-week simple moving average (SMA) and the 200-week exponential moving average (EMA), according to data from Cointelegraph Markets Pro and trading view show.
As of October 18, two trend lines were at $28,277 and $25,744, which have formed support and resistance since mid-August.
For Franzen, this is an important feature to note on the weekly time frame and constitutes one of several encouraging features on the BTC/USD chart.
“While I tend to be defensive, one of the reasons I am patient on BTC is that the price has been trying to use the 200-week moving average as support,” a blog post reads in part.
It added that bulls’ success in holding the 200-week moving average is a “good sign.”
Franzen also cited short-term holder realized price (STHRP) – the total on-chain price of the last movement of tokens owned by young investors.
Currently priced around $26,900, this indicator has received a lot of attention in 2023 due to its ability to act as market support.
“The price broke out of STHRP, which is a key feature of uptrends and which historically acts as dynamic support,” the post continued, while data From on-chain analysis resource ChainExposed.
“This raises the bullish odds.”
Franzen was quick to point out that despite these signals, there is no sign that Bitcoin’s price action will lead to a bull market-style rise.
“Collectively, these indicators indicate to us that constructive dynamics are occurring and bullish possibilities are increasing,” he explained.
“They don’t mean numbers are going up. They mean good things are happening.”
BTC price cycle seems like déjà vu is coming
These findings are consistent with other recent investigations into Bitcoin’s on-chain behavior.
Related: BTC Price Model Hints at Target of $130,000 After Bitcoin Halving in 2024
According to Cointelegraph, BTC/USD is still up around 6% this week, despite violent fluctuations that briefly disrupted market conditions.
As network fundamentals soar to all-time highs, expectations for BTC price action are building in anticipation of the block subsidy halving in April 2024.
Popular social media trader Mustache, one of the most outspoken optimists, continued this week to compare Bitcoin’s performance in 2023 to its performance in 2020
Illustrative diagram uploaded to
“Still looks textbook, doesn’t it?” Part of the accompanying comment questioned whether a “big move” would be coming soon.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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