Bitcoin price has continued the uptrend the last 7 days posting +13% gains. Latest move above 200 day moving average continues to signal upward momentum.
As mentioned above, Bitcoin price has continues to surge the last week, posting gains of nearly +13%. Aside from Bitcoin, other altcoins have followed king Bitcoin. During the last 7 days, the following cryptocurrencies have displayed growth of:
- Bitcoin: +13%
- Ethereum: +14%
- XRP: +9.68%
- Bitcoin Cash: +24%
- Litecoin: +34%
Bitcoin Technicals That Fueled The Rally
As we mentioned in a previous market analysis, Bitcoin had surpassed key resistance levels at $9,100 and was approaching the 200 day moving average. Since then, Bitcoin held above the $9,100 level and ended up crushing above the 200 day moving average which can be further displayed in the image below. Technically speaking, the 200 day moving average is important, because it signals long term momentum / sentiment. That's why on a yearly chart, you only see it occurring a couple times. It's historically a rare event whether your assessing stocks or cryptocurrencies and tends to be a bullish or bearish indicator depending on the direction ( trading above = bullish, and dropping below = bearish ).
In addition, Bitcoin is now forming a "reverse head and shoulders" structure which is also highlighted below. Typically speaking, the crypto markets have been known to not always react as heavily to this indicator compared to traditional stocks, but with the above technicals and now this structure, it makes the chart look quite lucrative for additional upward momentum.
What To Look For Next
With the trajectory Bitcoin price is taking right now, a run above $9,800 levels could fuel another bull run. If this were to happen, you could very well see Bitcoin price test $10,600 levels which would really trigger "FOMO" in the markets. A push above $9,800 levels could be bullish, because it could put price action in a similar position that you saw occurred during the initial 200 moving average burst we outlined on the chart above back in May of 2019.
Image Source: Pixabay