A crypto market analyst has shared the key levels to watch as Bitcoin (BTC) confirms a key level as support for the first time in months, opening the door to a continuation of its April recovery rally.
Bitcoin EMA Reclaim Signals More Upside PotentialAfter closing the week above a crucial level, Bitcoin jumped 2.2% to break above the $80,000 resistance for the first time since January. The flagship crypto had been trading between $74,000 and $79,000 for the past few weeks, failing to reclaim the range’s upper boundary despite multiple attempts.
Nonetheless, their divergence created a “general supply area” rather than the “general demand area” configuration, typically seen during bull markets. Now, “BTC has Weekly Closed above the EMA, performed a very volatile retest of it, and Weekly Closed above it again.”
As a result, Bitcoin is positioned for upside, the analyst affirmed, adding that it has the price strength confirmation after last week’s close, but it will need continued stability in the absence of a follow-through move higher.
“Generally, though, anything within this supply area is where the price should be rejecting and failing to rally higher,” he warned.
BTC At Trend Continuation Or Rally Ceiling?“The first time price reached it, we produced a decent rebound into new All Time Highs. The next time the price tagged the same level, we produced a much lesser rally, a sign that the support there was already weakening. Now, $82,500 doesn’t have a defined role. But we may be defining it as we speak,” the analyst stated.
