Bitcoin price reached 200 WMA (near $25,100), with a break above it suggesting a move toward $30,000. The last time this level was seen was shortly before the Terra collapse, according to LookIntoBitcoin.
A close above the 200 WMA on at least two weekly candles would confirm the move, the experts explained.
The significance of this guide was illustrated by a historical chart showing the formation of a cyclical bottom after it tested the price.
During the current phase the price fell below the metric. A return above it would restore investor confidence, the experts emphasised.
Experts noted a number of factors supporting the continuation of the optimistic scenario. Among them: the price breaking above the realized value from below to above (the transition of the average investor into profit), and also continuing scepticism about the rally’s ability to continue. The latter is reflected in near-zero funding rates. Historically, their negative values have been observed before strong rebounds or cyclical bottoms.
The potential for further growth is also indicated by the MVRV Z-Score indicator, which has only recently emerged from the green oversold zone and has not yet returned to equilibrium values.
Analysts at Glassnode explained the current resilience of Bitcoin near the $25,000 resistance as a result of a significant shift in market participants’ behaviour.
Earlier, Adam Farthing from B2C2 expressed the view that for the rally to continue, Bitcoin needs to break through the $25,000 mark.
Before that, Galaxy Digital founder Mike Novogratz suggested Bitcoin to reach $30,000 by the end of March.