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Will Bitcoin Price Rally Above Key 200-WMA Level? Or It’s A “Bull Trap”

Bitcoin price reaches a key level as traders speculate whether the current rally is a bull trap. BTC price soars 5% in a day.
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Will Bitcoin Price Rally Above Key 200-WMA Level? Or It’s A “Bull Trap”

Bitcoin price climbs nearly 5% in the last 24 hours to hit a 24-hour high of $24,924. While macro indicators and hawkish U.S. Fed comments dragged down BTC price from a high of $25,134 earlier, fresh data has lifted the price again.

Moreover, the market sentiment remains positive, with the Bitcoin Fear and Greed Index at 60. Traders are also wondering if the recent rally is a bull trap and taking caution due to “Greed” sentiment in the market. However, there’s a key level that expert investors are watching.

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Level To Watch Out For Bitcoin Price

BTC price is currently trading at $24,585. Surpassing the $25,000 psychological level will be a key momentum gainer for the market. However, investors must keep an eye on a key level to confirm a bullish momentum — the 200 Weekly Moving Average (WMA).

The 200-WMA is one of the most effective indicators that a trader uses to help identify long-term changes in direction of Bitcoin. The recent decline in Bitcoin price came as a result of resistance at 200-WMA, which is right above $25,000.

Bitcoin Price at Weekly Timeframe

If Bitcoin rallies above $25,000 and hold above the level, a major bullish rally will likely follow. However, it’s a strong resistance too and breaking above that level will be challenging.

Meanwhile, the RSI at 60 shows strength in the Bitcoin price and Bollinger Bands are opening wider. Thus, the indicators are bullish on Bitcoin and signal an upcoming price rally above $25,000.

Also Read: Bitcoin Price Still Bullish To Hit $30K, Predicts On-Chain Data And Crypto Analyst

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Macro Indicators Impacting BTC Price

The U.S. Dollar Index (DXY) dropped to 103.88 after hitting a high of 104.67 in the last 24 hours. A further drop in U.S. dollar strength will bring more upside move in Bitcoin price.

Meanwhile, oil prices and U.S. 10-Year Treasury bond yield are also declining. It will force the U.S. Federal Reserve to keep interest rate hikes away from the table and announce a pivot later.

Also Read: Elon Musk Promises To Monetize Twitter User Content Soon, Dogecoin To Pump?

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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