Bitcoin (BTC) Price Faces Multiple Barriers: 200-Day EMA, 200-Day MA, And Diagonal Trendline In Focus

Over the past trading week, Bitcoin (BTC) failed to make any significant price breakout, experiencing rejections at the $86,000 price region.

The cryptocurrency market is known for its volatility, and this year has seen a heightened level of uncertainty with several macroeconomic events impacting investor sentiment.

Following the highs of 2021, cryptocurrencies encountered a period of turbulence, slipping from the peaks attained during the previous year. As we advance into 2024, there is a sense of anticipation for the next major move in Bitcoin and altcoins.

Over the past trading week, Bitcoin (BTC) failed to make any significant price breakout, experiencing rejections at the $86,000 price region. While the market suffered no major price pullback, the high level of sideways price movement indicates a strong investor uncertainty.

Interestingly, popular market analyst with X username Daan Crypto has provided an insightful technical analysis on the BTC market, highlighting the present barriers that are restricting an upward price movement.

Bitcoin Multiple Barriers: 200-Day EMA, 200-Day MA, And Diagonal Trendline In FocusSince hitting a new all-time high in late January, Bitcoin has slipped into heavy correction, losing over 22% of its market price. The majority of the price loss has been linked to international trade tariff crises, which have forced investors to seek relief in less risky assets.

However, a pause in new tariffs and an onset in global negotiations soon accompanied a price rebound seen in early April. Albeit, Bitcoin is now struggling to break out of the $84,000-$86,000, forming a tight consolidation range.

In performing a technical analysis on the current BTC market, Daan Crypto has identified the three resistance factors that have been active in the specified price zone.

The first price opposition is a diagonal downtrend line formed by Bitcoin’s consistent lower lows and lower highs amidst the price correction in the past three months. To establish any intent of a trend reversal, Bitcoin bulls must force a convincing price breakout above this long-standing diagonal resistance.

Other critical indicators are the 200-day Exponential Moving Average (EMA) and 200-day Simple Moving Average (MA), both of which provide an average of the past 200 days’ prices, with the EMA giving more weight to recent prices.

The 200-day EMA is important in spotting medium-to-long-term trend changes as it reacts faster to any price change than the 200-day MA, which is a classic long-term indicator. However, Bitcoin must move above both indicators to break out of its consolidation and perhaps experience a full price recovery.

Solana Price Enters Consolidation Trend Above $130 That Could End In A BreakoutSolana (SOL) has been on a recovery path since slipping into bear market territory in March. The token dropped to a low of $10.27 in March, having reached a high of $259.96 in November 2022.

After losing over 60% of its market value from the November 2022 highs, Solana encountered a period of strong buying pressure that pushed the token price up by 140% in April. The recovery came amid a broader crypto market rebound, sparked by the collapse of FTX in November 2022.

Solana’s recovery was also aided by a decline in U.S. inflation, which had reached a 40-year high in April 2023. The decline in inflation led to a slowdown in the pace of interest rate hikes by the Federal Reserve.

Solana’s recovery stalled in May, and the token entered a period of consolidation. Despite the lackluster performance, one market analyst believes that Solana could be on the verge of a breakout from the consolidation phase.

In a recent X post, Daan Crypto, a popular market analyst, broke down the technical outlook for Solana. According to the analyst, Solana had been forming a diagonal trendline, which had been acting as resistance against any upward price move.

The analyst stated that Solana had also been trading below the 200-day EMA and 200-day MA, which were both present at $130.

“If Solana manages to break above the diagonal trendline, the 200-day EMA (orange) and the 200-day MA (yellow), then we might see a nice move to the upside.”

According to the analyst, a breakout above the 200-day EMA and 200-day MA would create a "bullish structure" for Solana, which could lead to a rally of around 30% to the $170 price zone.

However, the analyst noted that Solana would need to close above the 200-day EMA and 200-day MA on a weekly timeframe to confirm a breakout of the consolidation phase.

At the time of writing