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Renowned cryptocurrency analysis firm Skew has recently shared its perspective on Bitcoin's imminent market movements, predicting a retest of the $28,000 price level. This forecast is based on several technical indicators and price patterns currently forming on the Bitcoin market.
Skew's analysis points to the recent price reclaiming of the previous four-hour low around $27.2K as a critical juncture for a potential upside. This price level serves as a key support and resistance (S/R) point on the market. Achieving a consistent price above this level could set the stage for a further rise.
$BTC 4H Update
— Skew Δ (@52kskew) May 15, 2023
Price reclaiming previous 4H low around $27.2K (crucial for higher)
Price likely to retest 4H / 1D EMA trend in coming day & Oscillators indicating some bullish momentum (confirmation is RSI above 50 with price closing above previous 4H low)
$27.2K - key S/R… https://t.co/3dfcVi1eK6 pic.twitter.com/znBOSYpTUm
Furthermore, Skew indicates that the price is likely to retest the four-hour and one-day Exponential Moving Average (EMA) trend in the coming day. EMAs are widely used indicators in technical analysis to smooth out price fluctuations and identify market trends. The intersection of price and EMA often serves as a signal for potential market reversals.
Yuri MolchanAdding to the bullish case, the analysis also suggests some positive momentum building up, as shown by the oscillators. Oscillators are technical indicators that move back and forth between a minimum and a maximum limit, indicating the speed of price changes. A key confirmation for this bullish momentum would be the Relative Strength Index (RSI) moving above 50, along with the price closing above the previous four-hour low.
The $29.8K level is identified as a key four-hour supply point, which means it is a significant resistance level where sellers might start dominating.
As a safety net, Skew has also highlighted the 200-week Simple Moving Average (SMA) at $26K. The 200-week SMA is a crucial line in the sand for Bitcoin, historically acting as a reliable support during bear markets.
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