Bitcoin remained above $64,000 during the weekend and even climbed to just over $65,000 on Monday, which crypto analyst Doctor Profit has identified as a crucial buying zone.
He outlined the most significant range, which was strengthened by the presence of the 200-week moving average (MA200) running through its lower end.
Historic Buy Zone
The crypto asset has tested this area multiple times, and previous market cycles show that buying at or near the weekly MA200 has historically been profitable.
In his latest market update, Doctor Profit said this confluence has remained the foundation of his outlook since his earlier market pivot call. Rather than trying to identify the exact market bottom, the analyst said his strategy is centered on accumulating within a defined price range.
The focus should be on establishing an average entry between $54,000 and $64,000 rather than waiting for Bitcoin to print its absolute low. He added that even if BTC were to bottom near $54,000, achieving a long-term average entry around $58,000 would still represent a “phenomenal entry.”
“People who constantly wait for the exact bottom usually end up buying much higher, or not buying at all. I am not here to gamble on one perfect number. I am here to dominate the range, build a powerful average entry and position myself before the majority realizes the bottom is already behind us. Everyone who is ignoring this will lose.”
He described the current phase as a mid-term accumulation period that could take one to two months before its results become clear.
Looking ahead, this week’s Federal Reserve policy meeting is an important macro event for financial markets. He explained that market expectations currently imply a 65% probability of interest rates remaining unchanged and a 35% chance of a rate hike, while expectations for a September hike have climbed above 80%. This indicates growing caution among investors.
Next Bounce in Focus
Crypto trader Ardi said the current rebound could determine whether the crypto asset’s recent bullish pattern remains intact. He noted that every pullback within the recent trading range has followed the same sequence – a deep retracement, a full recovery, and then a higher high. As examples, he pointed to moves from $61,400 to $65,000 before retracing to $61,700, and from $61,700 to $65,500 before pulling back to $62,400.
Despite both rallies being almost completely retraced, Bitcoin recovered each time and eventually reached $67,000 last week. According to Ardi, if BTC fails to reclaim that local peak, it would be the first real sign that the pattern is breaking and bullish momentum is being absorbed by bears.
However, if it repeats the same behavior and breaks above $67,000, the trader said the bearish signal around that level would no longer be valid. This, in turn, could open the door for a larger expansion toward the $69,000-$70,000 range.
The post Bitcoin’s 200-Week MA Is Back in Play: Why It Matters for BTC’s Price appeared first on CryptoPotato.
Source: https://cryptopotato.com/bitcoins-200-week-ma-is-back-in-play-why-it-matters-for-btcs-price/