Bitcoin price climbs nearly 5% in the last 24 hours to hit a 24-hour high of $24,924. While macro indicators and hawkish U.S. Fed comments dragged down BTC price from a high of $25,134 earlier, fresh data has lifted the price again.
Moreover, the market sentiment remains positive, with the Bitcoin Fear and Greed Index at 60. Traders are also wondering if the recent rally is a bull trap and taking caution due to “Greed” sentiment in the market. However, there’s a key level that expert investors are watching.
Level To Watch Out For Bitcoin Price
BTC price is currently trading at $24,585. Surpassing the $25,000 psychological level will be a key momentum gainer for the market. However, investors must keep an eye on a key level to confirm a bullish momentum — the 200 Weekly Moving Average (WMA).
The 200-WMA is one of the most effective indicators that a trader uses to help identify long-term changes in direction of Bitcoin. The recent decline in Bitcoin price came as a result of resistance at 200-WMA, which is right above $25,000.
Bitcoin Price at Weekly Timeframe
If Bitcoin rallies above $25,000 and hold above the level, a major bullish rally will likely follow. However, it’s a strong resistance too and breaking above that level will be challenging.
Meanwhile, the RSI at 60 shows strength in the Bitcoin price and Bollinger Bands are opening wider. Thus, the indicators are bullish on Bitcoin and signal an upcoming price rally above $25,000.
Also Read: Bitcoin Price Still Bullish To Hit $30K, Predicts On-Chain Data And Crypto Analyst
Macro Indicators Impacting BTC Price
The U.S. Dollar Index (DXY) dropped to 103.88 after hitting a high of 104.67 in the last 24 hours. A further drop in U.S. dollar strength will bring more upside move in Bitcoin price.
Meanwhile, oil prices and U.S. 10-Year Treasury bond yield are also declining. It will force the U.S. Federal Reserve to keep interest rate hikes away from the table and announce a pivot later.