Bitcoin Rallies 1% to $84,860 as Bulls Target Key Moving Averages

Bitcoin (BTC) has seen significant price fluctuations recently, impacting bull traders and causing a general market downturn. However, there are signs of a potential turning point as bulls rally around key support levels. At the time of writing, Bitcoin’s price had increased by 1% to $84,860 over the past day.

On-chain data indicates that Bitcoin’s price is slowly gaining momentum after its recent dip below the $85k mark. Crypto trader Ali Martinez highlighted that Bitcoin faces two key moving averages ahead. The 200-day moving average at $86,200 could mark a significant shift in confidence if broken. Additionally, the 50-day moving average at $88,300 could also be surpassed as short-term holders limit sales.

Last month, the crypto market experienced a rocky period, leading to crashing prices and low trader sentiments. This was evident in the inflows to centralized exchanges and short-term trading techniques. Analysts, including CryptoQuant’s Bilal Huseynov, suggested that a realized Death Cross with present metrics could lead to a downward trend to $75k.

Despite these challenges, there are indications that the resistance around the moving averages could be broken. New transfers to other custodians signal long-term holding, with several whales and retail holders accumulating Bitcoin in the last two weeks. Notably, short-term holders only sent 6,300 BTC to Binance, indicating a decrease in selling pressure.

CryptoQuant’s researchers noted that the short-term SOPR chart and the UTXO Age Band for holders between 1 to 3 months show a decrease in selling pressure by this group. These holders, who form an essential part of short-term investors, appear to show reduced activity in the market after taking profits from their short-term trades of 1-3 months. This can be observed in the decrease in Bitcoin moved by them as well as in the short-term SOPR chart.

If Bitcoin breaks those key resistance levels, the crypto market could record a bullish swing. The recent price crash was due to macro events, but with recent positives, altcoin prices look set to gain momentum alongside Bitcoin. Ethereum (ETH) gained 0.5% as bulls ignited toward the $2k level. If the asset beats the mark, it will support institutional investors. XRP’s prospects remain sharp as multiple analysts have backed a drive above $5 amid spot ETF speculations in the United States.