"Bitcoin must reclaim $101,000…no mid-term trend reversal signal yet"

Bitcoin (BTC) is still viewed as being in a corrective phase, as it has failed to clearly regain the $100,000 level.

According to cryptocurrency-focused outlet Bitcoin Sistemi on the 26th, digital-asset research firm Matrixport said in a recently released technical analysis that Bitcoin’s 21-week moving average (around $101,000) has served as a key benchmark distinguishing bull from bear markets.

Matrixport explained that “the 21-week moving average has functioned as an effective trend-following indicator during uptrends, and in sharp selloffs it has provided early risk signals, helping prevent further losses.” Bitcoin’s 21-week moving average is currently formed around $101,000.

The firm added, “We warned in the fourth quarter of last year that the correction could deepen when Bitcoin fell below that moving average, and a downtrend subsequently continued.” It also assessed that the rebound attempt in late December last year ran into strong resistance near the 21-week moving average and failed to lead to a trend reversal.

Citing Bitcoin’s inability to settle above that price zone, Matrixport judged that the broader market remains in a correction phase. While a short-term technical rebound cannot be completely ruled out, it said clear signals to underpin a strong and sustained upswing are still lacking.

Analysts advise that, at this point, investors should closely monitor key technical indicators rather than take aggressive action. The prevailing view in the market is that only if Bitcoin stably reclaims the 21-week moving average can it be read as a more positive trend-reversal signal.