Bitcoin Price: Reclaiming Important Moving Average Could Lead to Retest of Highs
Since the start of the week, Bitcoin price has rallied from a retest of lows around $7,700 to $8,700 – gaining over $1,000 in value during the short timeframe.
The rise in Bitcoin price was also yet another retest of the asset’s 200-day moving average, and what happens from here could determine the trend ahead. Will Bitcoin return to its bull market, or will the leading cryptocurrency by market cap fall further to find new lows, putting any chance at a bull market in jeopardy?
Bitcoin Price Retests Recently Lost 200-Day Moving Average
Throughout the entire 2016-2017 bull run, Bitcoin price was supported by the 200-day moving average and didn’t close a candle below it. It was among the few indicators giving crypto investors hope that the recent triangle formation would break upward, causing Bitcoin to continue on its bullish rally.
Related Reading | Three Black Crows: Bitcoin Monthly Chart Forms Ominous Reversal Pattern
But the recent triangle formation broke down instead, and much to the fears of bullish crypto traders, the 200-day moving average was broken below, with many consecutive candle closes below it. Bitcoin price made a pair of reattempts to get through it but was ultimately rejected back down to a local low around $7,700.
After the most recent test of that low, Bitcoin price rocketed upward nearly $1,000 in a matter of a few days and is making its best attempt yet at breaking back above the 200-day moving average, and if it is able to close back above it, the correction may already be over.
Gold Bull Claims Bitcoin is Positioned for a Dip Towards $2,000
Saturday October 19, 2019
Bitcoin (BTC) has been trading within a tight trading range around $8,000 for the past week and has failed to incur any significant momentum in either direction that illuminates its near-term trend. One prominent...
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A close above the 200 dma and this gets back to 9k and above imo. Rejection here means well…ramen for a while pic.twitter.com/aeeLPeYqzm
— Walter Wyckoff (@walter_wyckoff) October 9, 2019
Bitcoin Actually Accepted? Luxury Car Firm Explores Blockchain and Crypto Payments
Thursday October 17, 2019
Karma Automotive, a luxury car manufacturer based in California, has just announced its intentions to explore blockchain technology with its shareholders. The means by which the firm intends to this is by accepting Bitcoin....
The post Bitcoin Actually Accepted? Luxury Car Firm Explores Blockchain and Crypto Payments appeared first on 12bitplay - Bitcoin Play.
However, if Bitcoin cannot break above the 200-day moving average, and is rejected, one crypto analyst jokingly suggests that ramen noodles – a mainstay of low-income college students – will be on the menu for some time to come.
The 50-Day Moving Average And Potential Death Cross Approaches
If Bitcoin can indeed get through, it’ll have the 50-day moving average as the next obstacle it faces. The other notable moving average often used by crypto analysts, is currently resting at about $9,500 – a range that was heavily defended by bulls before the breakdown occurred.
But if Bitcoin price is rejected by the 200-day moving average, the 50-day moving average will begin to fall further, and draw closer and closer to making a death cross – an occurrence where a short-term moving average falls below a long-term moving average, typically signaling the asset is a sell.
Related Reading | Crypto Market Death Cross Inches Closer, Will The Bear Market Return?
The last time the death cross occurred, was back in April 2018, and it resulted in over a year of a bear market before it crossed back up – making a golden cross – in April 2019 at the start of the parabolic rally.
Featured image from Shutterstock
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Ethereum (ETH) Rebound Faces Major Hurdle Near $180
Friday October 18, 2019
Ethereum price is currently correcting higher, but it is facing a strong resistance near $180 against the US Dollar. Bitcoin price is up more than 1.5%, but it is also facing resistance $8,120 and...
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