Crypto trader and influencer Lark Davis thinks Bitcoin is ready to rally once it goes above a key price area.
In a new strategy session, Davis tells his 410,000 subscribers that he’s got his eye on the 200-day simple moving average (SMA) to determine whether Bitcoin bulls can recapture momentum in the market.
“There’s one simple line we need to keep our eye on. That is the 200-day simple moving average. That’s the bull/bear line for me…That’s currently around $44,700. That’s the line that the bulls need to take control of. Until we cross over that line, we are still technically in a bearish trend.”
Zooming out from the current price pump, Davis posits that Bitcoin’s run above $64,000 in April and its subsequent 54% retracement a month later could potentially just be a massive retest of weekly support at $29,300, which was built earlier this year. According to Davis, the support retest could indicate that Bitcoin might be gearing up for a strong surge.
“But what if all of this – what if all this crazy run-up, all this crazy bearish action – has simply been one massive, incredible retest of support, which essentially means that Bitcoin is getting primed for a mega moon rally… We going to the moon once we reclaim the 200-day [simple] moving average.”