Bulls Must Reclaim $27.8K – Overconfidence Reigns in Bitcoin Market

According to a popular analyst, for Bitcoin (BTC) to regain its bullish status, it needs to reclaim one key moving average. CryptoCon recently issued an analysis to its subscribers, suggesting that bulls are too optimistic about the $26,000 BTC price support.

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20-week EMA as BTC price line in the sand

Bitcoin managed to bounce back above $26,500 in its most recent daily close, according to data from Cointelegraph Markets Pro and TradingView—but the market outlook is still uncertain.

CryptoCon suggests that bulls must reclaim the 20-week exponential moving average (EMA), which is currently at $27,750, in order to restore the uptrend.

“I have been emphasizing this moving average quite a bit lately, but I believe it is essential for Bitcoin to regain its bullish momentum,” he wrote.

The analysis compared the current BTC price action to its rebound from the lows of 2018. It was only after reclaiming the 20-week EMA that Bitcoin went on to reach its all-time-high of $69,000 in 2021.

Before that, however, a failed attempt at reclaiming the EMA was met with a strong rejection.

“Price tried to reclaim the moving average but it couldn’t hold it,” it stated.

The accompanying chart showed the similarities between 2019 and 2021, with the retest and subsequent successful EMA reclaim circled.

“All I see is weakness”

Elsewhere, CryptoCon voiced his doubts about the bullish argument related to Bitcoin’s relative strength index (RSI) readings. As Cointelegraph reported, these readings are at multi-year lows on various timeframes, indicating that Bitcoin is undervalued at present prices.

“I would love to say that very oversold RSI is a good thing but the only thing I can make out is weakness,” he confessed.

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