Bitcoin Faces Major Monthly Resistance, Traders Await Breakout

With an eye on the 21-month moving average for a possible breakout, traders have their attention fixed on Bitcoin’s monthly resistance once more. It is a technical level that Crypto Rover says may be what decides BTC’s next big move.

Historical Context of Bitcoin Monthly Resistance

In his most recent broadcast, Crypto Rover has put forward that at the 21-month moving average, Bitcoin is facing a case of critical monthly resistance. One need only look to the past: on three prior occasions when Bitcoin moved above this level, the market was quick to accelerate. Such precedent leads many to consider the present circumstances to be of some importance to the market.

The 21-month moving average is regarded by Crypto Rover as a prime technical indicator in view of how often these breakouts have occurred. If one puts stock in history, getting over this line would be tantamount to a new bullish chapter for Bitcoin.

Market Sentiment and Technical Setup

Then there are the funding rates. They are running negative and for the most part, traders have taken short positions, but Crypto Rover argues that this is a bullish sign in itself. An abrupt rise in price can force short sellers to cover, thereby hastening a breakout.

Over on the daily chart, $80,000 is where Bitcoin is finding support; in Rover’s assessment, this is essential if there is to be any lasting upward progress. Traders will also be on the lookout for a bull flag to take shape, a time-honored pattern that would confirm bullish momentum were BTC to remain within its range.

Potential Scenarios and Key Levels to Watch

Crypto Rover sees two ways to play it with regard to the monthly resistance. A clear breakout above the 21-month moving average could lead to the kind of exponential growth that has been the hallmark of earlier cycles; the $71,000 area is pointed to as a good place to enter or add to a position. On the other hand, a rejection might prompt some to hedge in expectation of a correction. But even a pullback is not the end of the story, according to Crypto Rover, who expects a rally to follow and another attempt at breaking higher.

This article reflects the channel author’s opinion and is not investment advice.