U.S. markets and crypto are still in the grip of fear as the economy continues to move into a very uncertain 2025. That said, in the face of this adversity, Bitcoin (BTC) is still maintaining its gains of the last couple of weeks, as it holds above the important 200-day moving average.
Decision time coming for Bitcoin
Source: TradingView
According to the above daily chart, the $BTC price is moving towards a major decision point. Below is the 200-day moving average, which generally provides support during a bull market, and below this is the $80,000 support, and then the hugely strong $70,000 horizontal support which marks the top of the 2021 bull market.
Above the price is the descending trendline that started from the $109,000 top, and just above this is the important $91,000 horizontal level which most of the price action, since November 2024, had rested upon as support.
The current battle the bulls are having with the $87,000 resistance is the first step to a break higher and a potential start of a trend change. While, if that battle is lost, a break down out of the ascending wedge, and another dip below the 200-day MA is the bearish scenario.
Can MACD flip bullish?
Source: TradingView
The weekly chart shows how the $BTC price eventually burst out of the bull flag and came to a top at $109,000. However, since that time, a downtrend has been persisting. That said, the horizontal support at $80,000 has provided $BTC with the base for a bounce.
At the bottom of the chart, the MACD indicator is showing that the blue indicator line is still below the orange indicator line, which is bearish. However, if one looks back at most of the previous 8-month bull flag, it can be seen that this was also the case back then, until the bull flag breakout.
This time, if the descending trendline can be broken to the upside, and this could potentially take place as early as next week, a cross back of the indicator lines would likely signal green histogram bars once again, and a possible recontinuation of the bull market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
