Bitcoin long term buy indicator just flashed as BTC faces critical resistance (price analysis)

BTC continued to rise with impressive spot volume hitting an intraday high of $ 45.3,000 even during weekend trading.

The cryptocurrency is now testing one of the most critical resistance levels at the 200-day moving average. Successfully recovering this level will trigger a strong buy signal in techniques, likely encouraging high momentum traders and other market participants to enter the market, further adding to the buying pressure in an already exhausted state.

Another critical level that needs to be recaptured for further upside is the 21-week moving average at $ 44.5,000

Overall, BTC’s technical characteristics, structure, momentum, on-chain data and sentiment tend to increase, showing the first signs of a strong recovery. One of the main signals of a market reversal is the increase in open interest rates on BTC futures throughout the 3-month consolidation, while funding rates were consistently negative, resulting in implies that the market was net short in BTC, increasing the likelihood of a possible short squeeze.

The spot buy led to a massive squeeze and pushed BTC from a low of $ 28.8,000 to an intraday high of $ 45.3,000

Pay attention to short-term technical spelling

Short term techniques appear to be overbought, with bearish divergence forming on the 4 hour chart. This suggests that the price of BTC could enter a period of consolidation around current levels to prepare for the next major move.

Flashing long term buy signal

What’s very interesting is that the BTC Hash Ribbon indicator turned bullish on the day BTC tests the 200-day MA. The Hash Ribbon simply measures the hash rate of the Bitcoin network on a 30-day and 60-day moving average. When the 30-day moving average exceeds the 60-day moving average, it signals a potential capitulation by the miners – an indication that strength is returning to the Bitcoin network in hashrate.

The bullish cross of the BTC Hash Ribbon indicator is seen as a long term buy signal for BTC. Rather, it is a lagging indicator as the BTC price does not immediately rally when it flashes. The previous 2 buy signals that flashed during major rallies in the BTC hash rate, saw a near term price consolidation, and then ultimately a significant rally to the upside.

Given BTC’s short-term overbought conditions, we may see a consolidation first, before a big rally. Ideally, short-term consolidation would be healthier for the technical structure and make the recovery more sustainable.

The weekly BTC close comes at a time when the 200-day moving average is tested with a flashing long-term fundamental buy signal. The bulls are now waiting for one of the bigger technical buy signals to flash.