Bitcoin Bulls Eye $70,000 as Price Nears Crucial 200-Day SMA
Mustafa Mulla24 Sept 20242 min read
Bitcoin is once again testing a key resistance level for the third time since August, signaling the possibility of a major price move. According to renowned crypto chart analyst Ali Martinez, this level could be the gateway to a significant bullish breakout. The last time Bitcoin broke through a similar level, it skyrocketed to $70,000.
Could we be on the verge of another massive price surge?
Importance Of 200-Day SMA
Bitcoin has experienced an impressive 8.7% rise over the past week, driven by the recent Federal Reserve rate cut announcement. This surge has pushed the cryptocurrency to $63,000, bringing it tantalizingly close to the crucial $64,000 mark, where the 200-day Simple Moving Average (SMA) resides.
The 200-day SMA is a widely trusted indicator among traders, representing the average price over the past 200 days. This line offers insight into the market’s long-term trend, and when Bitcoin breaks above it, it often signals an upcoming bullish rally.
Bitcoin Is Testing the Waters!
Crypto analyst Ali Martinez points out that Bitcoin is currently hovering near this critical level, around $63,176, for the third time since August. After multiple failed attempts to breach this resistance level, Bitcoin is once again testing its strength.
Back in October 2023, Bitcoin broke above the 200-day SMA at approximately $28,000, sparking a massive rally. That surge was fueled by the excitement surrounding the potential approval of a spot Bitcoin ETF in the U.S., propelling Bitcoin to its all-time high of over $70,000 by March.
Are We on the Brink of Another Breakout?
Fast forward to today, and the situation is eerily similar. The recent approval of options trading for BlackRock’s Bitcoin ETF, along with growing institutional interest, has many experts predicting another breakout. If Bitcoin can sustain a move above the 200-day SMA, it could ignite a fresh bull run, potentially driving the price back into the $64,000 to $74,000 range.
Bitcoin Liquidations Show Caution
Bitcoin is currently hovering near its 200-day Moving Average (MA), a crucial level for traders. According to data from CoinGlass, around $16.42 million worth of long positions and $7.12 million in short positions were liquidated in the past 24 hours.
This shows that traders are treading carefully, with liquidation levels suggesting there is little downward pressure on the market right now.
The stage is set for a potential Bitcoin bull run. Will the market deliver?
