Crypto Jebb has put the Bitcoin 20-week EMA in the spotlight, contending that the premier cryptocurrency is at a juncture that could determine the outcome of the next bull market. Whether it can overcome this resistance will likely set its course for the rest of the year.
Why the Bitcoin 20 Weekly EMA Matters Now
For now, Bitcoin is displaying some resilience with a bounce off the 20-day exponential moving average (EMA). But the true measure of its strength is at the 20-week EMA, a level of historical significance. One need only look at previous bear markets to see that Bitcoin was unable to get above the 20-week EMA until it did so and a new bullish cycle got underway.
That makes the present rally of particular interest to traders, old and new alike. The 20-week EMA is a key indicator when it comes to filtering trends; being under it has been synonymous with bearish times, whereas a break above is an early harbinger of a bull run. All eyes in the crypto community are on the market as Bitcoin nears this line to see if there is a decisive change in the making.
Key Technical Signals Around Bitcoin’s Current Price
There is more to the resistance at the 20-week EMA than meets the eye, given its alignment with other technical considerations. Crypto Jebb makes the case that this is a formidable barrier because it corresponds with former all-time highs and some key Fibonacci retracement points. One can expect a good deal of scrutiny from traders on the price action where these factors converge.
On top of that, there is a bullish RSI divergence to be seen on the Bitcoin chart which, in the view of Crypto Jebb, underpins an optimistic outlook. It is a sign that the bears are running out of steam and buyers may well be poised to step in. These are the kinds of patterns that are followed in the crypto space for what they portend in terms of major price movements.
Potential Outcomes and Strategies for Bitcoin Traders
A break above the 20-week EMA for Bitcoin in the weeks ahead is something to watch, says Crypto Jebb. In his view, such a move would be a sign that a new bull market is on its way, likely to materialize in 90 to 120 days or perhaps by year’s end. It would be a marked change in both sentiment and direction following what has been an extended period of indecision.
Jebb would have traders prepare for some long positions should Bitcoin enter a bullish phase by overcoming this resistance. Newcomers to the space are well advised to wait for a clear weekly close over the 20-week EMA before making any sizeable trades. In short, the next couple of weeks may prove pivotal for Bitcoin and the rest of the crypto market.
Source — Crypto Jebb: https://www.youtube.com/watch?v=6cGCDpQl1oY