Bitcoin is trading above the $80,000 level, with $83,000 becoming a critical resistance level for the market. Julio Moreno, head of research at CryptoQuant, noted that Bitcoin's 365-day moving average on the daily chart represents a significant resistance level, potentially acting as the 'final boss' in the current upward trend.
According to Moreno's assessment, Bitcoin surpassing this moving average could pave the way for further gains for the cryptocurrency. The analyst pointed out that the 365-day moving average is around the $83,000 area. Therefore, investors should closely monitor Bitcoin's price action within this range in the short term.
As of the time of writing, Bitcoin was trading at $80,868, according to data. Compared to the previous day, the cryptocurrency rose by 2.38 percent. Thus, Bitcoin is approximately $2,100 away from the critical resistance level of $83,000.
In technical analysis, moving averages are used to assess the overall market trend by showing the average price of an asset over specific periods. The 365-day moving average is one of the key indicators that long-term investors and analysts use to study Bitcoin's trend.
It is believed that if Bitcoin breaks through the $83,000 resistance level, the market could maintain its upward momentum; however, if it fails to overcome this level, it may lead to short-term profit-taking or consolidation. Following the recent rapid rally, it is particularly important for investors to pay close attention to changes in technical indicators.
Moreno's statement suggests that Bitcoin is approaching a critical threshold in its current upward move, and the $83,000 level is becoming a decisive zone for the market's short-term direction.
*This is not investment advice.
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