According to charts provided by TradingView, bitcoin clearly surged through the 200-day moving average (MA) during its April 2 price pump. One crypto influencer, however, has recently presented a chart with much different data.
Looking at a different chart
Well-known trader Alessio Rastani posted an April 10 video showing that bitcoin is currently facing resistance at the 200-day MA. It’s an odd observation, in the sense that BTC has clearly already pumped right through the 200-day MA, as seen in the chart below.
Rastani, however, used an “MT4” chart. He said this particular chart “excludes weekend data.” Since crypto markets are open 24/7, TradingView charts run data on these assets constantly. Cryptocurrency traders also make use of TradingView charts frequently, as seen on Twitter and YouTube.
In regards to his reasoning behind excluding weekend data, Rastani said, “The charts that exclude weekend data can be more reliable.” He added, “A lot of weekend activity can be driven by algorithmic bot activity, which of course, tend to corrupt the actual picture on bitcoin.” He said it might be a good idea to reference both types of charts.
Rastani also pointed out an MT4 chart from 2018, showing bitcoin’s price dropping significantly down to the 200-day MA and bouncing off it as support.
Weekly and monthly charts face similar resistance
Rastani showed the weekly and monthly MT4 charts for BTC, which also showed bitcoin fighting resistance.
On the weekly chart, the trader revealed bitcoin tapping both the 55-week MA and the 100-week MA as resistance.
On the monthly chart, he indicated that bitcoin is battling the 21-month MA.
Based on price action and a few other indicators, Rastani still remains bullish on price action for the asset. “For the moment, this [bitcoin] momentum has probably a bit more juice left in it,” he said.
The analyst also noted he does not think this current move is the beginning of a new bull market trend. He thinks the current upswing eventually will fail and price will head back down to previous support, as stated in the video.
Impact from traditional market traders
One interesting aspect to consider might be the effect of traditional market traders and investors who also are now trading bitcoin or its futures. Traditional market traders typically operate during daily trading hours when the market is open. It would make sense for these professionals to stick to their schedule, by using charts that focus on such hours.
Additionally, unlike the general crypto market dynamics, bitcoin futures on the Chicago Mercantile Exchange (CME) are not 24/7 either. Although this product is only cash-settled, traders might look to hedge their positions with actual bitcoin, possibly during weekly operating hours, in line with their other trading activity.
*This article is based on opinions, speculations and interpretations from the author and others, and is not in any way financial advice. Writing about price levels, charts, etc., is purely speculation, subject to speculatory bias. Nothing written is any kind of advice whatsoever. Proceed only at your own risk.