Signal indicates Bitcoin's SMA-120 trend changing, heralding a shift in market phase
In a recent analysis, CryptoQuant analyst Axel Adler Jr. has reported a shift towards a neutral-bullish phase in Bitcoin's trend. This change is marked by the Simple Moving Average (SMA)-120 line surpassing the zero axis, which historically indicates a potential trend reversal.
This trend, if sustained, could set precedents for future market shifts and attract renewed institutional interest. According to technical analysis, such crossings typically mark the early stages of multi-week rallies or a sustained bullish phase if the SMA-120 can hold above zero for a couple of days.
The SMA-120 line pivoting upward after an extended decline and crossing above zero signifies a potential trend reversal from bearish to bullish conditions. However, it's important to note that previous attempts at this reversal have sometimes failed, with the SMA-120 falling back below zero and renewed selling pressure occurring. The confirmation requires the SMA-120 to remain above zero for about two consecutive days.
When confirmed, this crossover often aligns with renewed buyer interest pushing BTC prices up from key support zones, potentially leading to retests of resistance levels and multi-week upward rallies. This SMA-120 behavior is complemented by fundamental factors such as favorable policy changes that increase market confidence, strengthening the reversal signal.
The 50-day SMA often provides additional dynamic support during these reversals, reinforcing the bullish case in the short term when BTC maintains its price above this moving average.
Sophia Panel, a cryptocurrency journalist with over 10 years of experience, has been reporting on token listings, stablecoins, exchanges, and market trends. She currently contributes to Coincu.com as a content strategist, specializing in crypto content strategy, SEO, and web3 storytelling. Panel has a strong presence on various social media and podcast platforms, focusing on user engagement and education.
According to insights from the Coincu research team, the SMA-120 crossing could enhance trading volumes and price movements. The market shift to a neutral-bullish phase emerges amid intricate macroeconomic influences, including anticipated Federal Reserve interest rate cuts.
Sophia Panel is passionate about educating underserved communities about blockchain potential. She has been invited as a speaker at Indian Web3 Summits and global blockchain forums. Her skills include blockchain content strategy, SEO & Web Analytics, Public Relations & Community Growth, Longform & Thought Leadership Writing. Her podcasts include SoundCloud, Podcasts.com, Podbean, Spotify, Podomatic, and more.
As of now, according to CoinMarketCap, Bitcoin (BTC) is currently valued at $116,655.62, with a market cap of $2.32 trillion.
While the SMA-120 crossing above zero after a period of decline functions as a technical indicator historically linked to trend reversals from bearish to bullish phases in Bitcoin, it's important to remember that no single signal guarantees sustained gains. Confirming the reversal requires sustained SMA-120 strength and supportive market conditions.
[1] Adler, A. (2023). Bitcoin Technical Analysis: SMA-120 Crossing Zero Axis Signals Potential Trend Reversal. CryptoQuant. [3] Coincu Research Team. (2023). SMA-120 Crossing Zero Axis: A Potential Market Phase Change for Bitcoin. Coincu.com. [5] MarketWatch. (2023). Bitcoin Price Surges After SMA-120 Crosses Zero Axis. MarketWatch.com.
- As the SMA-120 line crosses above zero, it could potentially signal a trend reversal from bearish to bullish conditions in Bitcoin, setting precedents for future market shifts and potentially attracting increased institutional interest.
- If the SMA-120 crossing above zero is confirmed, it might lead to renewed buyer interest, pushing BTC prices up from key support zones, retesting resistance levels, and initiating multi-week upward rallies.
- With the SMA-120 crossing zero, strengthened by favorable policy changes and increased market confidence, there could be increased trading volumes and price movements, as suggested by insights from the Coincu research team. However, it's crucial to remember that while this technical indicator historically links to trend reversals, it does not guarantee sustained gains, and confirming the reversal requires sustained SMA-120 strength and supportive market conditions.
