According to the Transfero Research team, bitcoin still has room to soar in the short term. The crypto asset continues to make rising tops and bottoms and respects the 21-period average, which defines the tertiary uptrend when analyzing the daily chart.
Despite the 200-period moving average is down, Transfero highlights that prices are well away from it and the asset still has room for a stronger correction of this bearish move, going towards it. However, there are some resistances, and well-defined barriers above the current price, as seen on the chart.
For the medium term, the primary trend, defined by the slope of the 200-period moving average, is still bullish. However, the tertiary trend, driven by the 21-period average, is already bearish.
The timing of the price touching the 200 average should be observed together with other factors, such as long-term support levels of the asset.
“It is also worth noting that this average, according to the weekly chart, has always been respected as an entry zone of buying force since this crypto started trading”, explained Transfero’s analysts.
Thus, this level can be considered an important accumulation region for long-term investors. Therefore, some investment strategies for this horizon, such as Dollar Cost Averaging (DCA), are drawing attention.