The evidence is mounting that bitcoin is likely to continue its recent upwards price momentum. In what is widely regarded as a bullish market signal for the asset, bitcoin has now risen above the 200-day simple moving average (MA), an indicator watched closely by investors to determine whether the asset is trending either bullish or bearish.
Bitcoin Reclaims 200 MA – What Next?
In advance, analysts were broadly in agreement that a daily close above bitcoin’s 200 MA was bullish.
Once the 200 day MA was surpassed, analysts began offering suggestions as to what sort of resistance might be on the horizon.
Katie Stockton of Fairlead Strategies argued that if the price continued upwards as she expected, it was likely to encounter resistance close to US$51,000. William Noble, chief technical analyst of research platform Token Metrics, offered similar input:
$43,700 is an important resistance point for bitcoin … if bitcoin moves above that level, and successfully retests it, the uptrend can accelerate. $49,000 could be the next stop and I would not rule out a gap move back to the highs at $64,000.
William Noble, chief technical analyst, Token Metrics
Others, such as Jake Wujastyk of TrendSpider, put the resistance level for bitcoin around US$45,000. According to him, the next level to watch above this would be the US$50,000 psychological level.
This sentiment was shared by John Iadeluca, founder and CEO of Banz Capital:
The price of $50,000 stands as a key psychological, as well as technical, level that holds immense selling pressure.
John Iadeluca, founder/CEO, Banz Capital
Focusing on on-chain analytics, Will Clemente suggested that bitcoin still had some way to go to address the current supply shock under way:
Bitcoin Gains Despite Regulatory Uncertainty
Remarkably, bitcoin’s current upwards trend is happening at a time of great regulatory uncertainty in the US, where a bill looks set to be passed that will have deleterious consequences for the entire crypto industry. For some reason or another, bitcoin doesn’t seem to care.
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