Bitcoin is Doomed Unless it Closes Above this Key Level this Week

Bitcoin has made some progress with recovery after falling under $100,000 for the first time since June. However, the top asset still faces serious risk unless it closes well at the end of the week, a crypto analyst says.

• Despite Bitcoin’s slight recovery from the recent crash, the upward movement is not confirmed yet unless it closes the week above the 50-week EMA.
• If Bitcoin fails to close above this level around $101,972, things could turn bearish again, taking the price lower.
• Indicators suggest strength and a good chance that the coin will close the week well and ensure continuous recovery for the whole market.

According to crypto analyst Lark Davis, Bitcoin will need to close the week above the 50-week Exponential Moving Average (EMA).

The EMA tracks the price of Bitcoin over a period of time (in this case 50 weeks), giving more weight to recent prices.

Bitcoin is Sitting on Thin Ice

Davis says that Bitcoin is at a critical point right now, comparable to sitting on thin ice as any slight move could trigger another downward move.

The 50-week EMA is the only thing holding it up now and the coin needs to confirm this as support by closing above the level this week. 

The crypto influencer says failure to close above the line could cause the market to turn bearish again for Bitcoin and by extension all altcoins.

This means that the fate of Bitcoin and the rest of the market will be determined at the end of this week, not before.

Signs Suggest Bitcoin is Ready to Bounce

Davis’ analysis is quite disturbing considering the fact that Bitcoin and the entire market are just starting to recover from an intense correction.

However, there are indicators that Bitcoin may have the stamina to close above the required level to sustain the recovery.

Onchain analytics platform CryptoQuant said that the top asset has hit a Bull Score of zero for the first time in five years and while it creates panic, it could also mean that the bottom is in.

The recovery therefore may be due to a genuine bottom for Bitcoin, which means it can be sustained beyond just a short time.

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