Further double-checking the daily BTC/USDT chart below reveals that Bitcoin has reclaimed the important 200-week moving average (red) as support. This crucial moving average has a history of marking past Bitcoin bottoms and could be a significant indicator that BTC selling by investors and miners could have subsided.
However, the daily MFI, MACD, and RSI all point to an overbought scenario for Bitcoin that could result in a pullback to the same 200-week moving average around the $22.5 k price area. But, if Magic’s analysis is to be considered, a push higher to $28k is in line with Bitcoin tapping the 100-day (yellow) moving average around the same level.
Bitcoin Has Punched Through a Capitulation Structure – Willy Woo.
Similarly, veteran Bitcoin analyst, Willy Woo, has noted BTC’s price movements in the last few days and concluded that the digital asset could have ‘punched through a capitulation structure’ that could foreshadow the beginning of a proper bottom. He shared his analysis through the following statement and accompanying chart.
BTC punched through a capitulation structure. i.e. investors who bought higher sold out in droves while urgent buyers were there to rally the price against the selling. The next step in a proper bottom signature happens when the contours get dense under the price.