Is it Time to Buy? 3 Analysts Announced Levels to Watch in Bitcoin

The Bitcoin (BTC) market has bounced back from its weekly closing losses on August 28. Accordingly, it has shown resilience recently as it surged to $26,226. We are in an environment where China’s tax cuts increase risk assets. BTC traders are keeping a close eye on support levels and key indicators to gauge the cryptocurrency’s trajectory. Among the key indicators is the 200-week exponential moving average (EMA). Also, the area around $26,000 is emerging as crucial levels for Bitcoin’s price action.

Bitcoin price analysis: Critical support and resistance

The recent price action of Bitcoin BTC has prompted traders and analysts to identify key support and resistance levels. Michaël van de Poppe, founder and CEO of trading firm Eight, underlines the importance of the 200-week EMA, which sits around $25,700, as a key support zone. Van de Poppe states that exceeding this level may mimic historical horizontal trends. He also states that staying above this level could indicate a potential bottoming stage and a strong entry point.

Van de Poppe outlines possible scenarios. Accordingly: If the 200-week EMA remains intact, a rebound is likely. Otherwise, there will be a drop towards $19,500-$21,500 for Bitcoin. He acknowledges that lower timeframes could witness fluctuations around the 200-week EMA. However, he emphasizes that maintaining this level is very important for Bitcoin’s trajectory.

Strategies and key regions

Van de Poppe examines strategies based on order book liquidity. He notes that the most likely outcome could include a “sweep” below the 200 EMA. On the other hand, he argues that this could lead to two different approaches. The first strategy involves a stable entry at $25,750 when this level is recovered. The second strategy targets the 200-week EMA at $24,700-25,000. Looking for bullish divergences on higher timeframes, he predicts a dip to $25,200. Van de Poppe highlights the importance of recovering $25,750 during the bounce to validate these strategies.

Meanwhile, popular trader Titan of Crypto is highlighting $25,900 for Bitcoin BTC as a key area of ​​interest. Accordingly, in one part of his X analysis, he summarized “$25,900 is the level to watch”.

Bitcoin RSI stays ‘very low’ for second week

Trader Pheonix points to Bitcoin’s relative strength index (RSI). It refers to sustained lows on lower timeframes. Pheonix wrote in part of his comment that day, “The RSI is still very low for 1.5 weeks.” gives the expression. Pheonix also states that there has been a drop below 25k for Bitcoin recently. He also states that he repeats it 7 or 8 times. Accordingly, he underlines that he expects a 30% increase for BTC from here.

RSI tries to measure when an asset is overbought or oversold at a certain price point.