Bitcoin (BTC) needs to reclaim a key moving average to “resume its bullishness,” according to a popular analyst.
In an analysis published to subscribers on Aug. 22, CryptoCon warned that bulls are still too optimistic about holding BTC price support at $26,000.
20 Week EMA as BTC Price Line
According to Cointelegraph Markets Pro and transaction view suggest – but a sober market summary suggests the bulls have more work to do.
For CryptoCon, the 20-week exponential moving average (EMA) (currently at $27,750) must be won back as support to keep the uptrend safe.
“I’ve been following this moving average a lot lately, but I believe it’s critical for Bitcoin to return to bullishness,” he wrote.
The analysis compares the current BTC price action to the rebound from the 2018 cycle low. Then, as the 20-week EMA retraces, Bitcoin is finally on its way to a 2021 all-time high of $69,000.
Before that, however, an unsuccessful challenge was resolutely rejected.
“Prices floated above the moving averages but were unable to hold,” it said.
“Bitcoin breaking and retesting the 20-week moving average as support is very important.”
The accompanying chart shows the similarities between 2019 and 2023, with a retest and subsequent successful EMA recovery circled.
“All I see are weaknesses”
Elsewhere, CryptoCon questioned the validity of the current bullish thesis surrounding Bitcoin’s Relative Strength Index (RSI) reading.
Related: Bitcoin Halving Could Push BTC Price to $148k by July 2025 — Pantera Capital
As Cointelegraph reported, these prices are at multi-year lows on multiple time frames, suggesting that Bitcoin is overall undervalued at current prices.
“I would say that the relative strength index (RSI) is very oversold which is a good thing, but the only thing I can see is weakness,” he admitted.
“This is combined with below healthy support levels and early signs of a reversal in market structure. At a true bottom, I believe even the most bullish analysts will question themselves. I’m optimistic about being proven wrong, but on a long-term basis The data is also very realistic.”
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