Bitcoin is now above $44,000. After several weeks of slow momentum bitcoin was able to start a recovery trend. This has led to it adding over $4,000 per day to its current price. The bitcoin price has reached its landing point at $43,000. This level has helped it surpass the 50-day moving average. This is what bitcoin means.
Bitcoin Breaks Above 50-Day SMA
Bitcoin trades above the simple moving average of 50 days. The digital asset is important because it shows what buyers will pay in the near and medium-term. This level is indicative of a lackluster enthusiasm and unwillingness of buyers to pay more than the amount they have already paid in the last few weeks.
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BTC trading at a higher level than this means that it is clear that investors want to return to the market. It takes the reins out of the hands of the sellers and makes it a buyer’s market. As more buyers are willing to buy, the supply of digital assets decreases and so does the value.
Also, this could indicate that bitcoin may have already reached a bottom local at $38,000 It confirms the local support area for bitcoin, which bulls have resisted.
BTC Settlements Above $43K | Source: BTCUSD on TradingView.com
Alternately, digital assets are now trading higher than the simple moving averages of 5 and 20 days. This makes the digital asset extremely bullish in the short term. This has pushed the market to buy more, increasing the asset’s value. BTC investors have been choosing to keep their bitcoins instead of selling them for profit, and miners are leading this trend.
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Despite the current uptrend bitcoin is still not in the clear. While it broke the $43,349 resistance on Tuesday, there is still a significant hurdle to overcome. The cryptocurrency will reach this milestone because bears are certain to mount resistance at $45,044, which is an important one. The next resistance is approximately $48,000. If that happens, bitcoin will be free from any restrictions.
The first bitcoin support level is far lower than the resistance. BTC could fall below $43,300 if it fails to maintain above that level. This would make the market drop to $38,000 where the bulls are strongest supported. It could lose $5,000 as quickly as bitcoin gained, which is a volatile asset.
Featured image taken from South China Morning Post. Chart by TradingView.com