Bitcoin reclaimed $50k yesterday. It was hard to miss the news as half of the twitter community seemed to make comments about it. This is great news for Bitcoin investors as well as other crypto traders. Bitcoin may start a new rally into the new year. But here’s two other bullish signs you may have missed that could indicate a further move higher.
Bitcoin also broke through an important daily resistance trend. This trend has been holding since Bitcoin initially fell off from highs. Last time it was tested the price fell heavily and was bought up at $42k. What could we expect next? A hold above $50k would do well for continuation. However, it is likely that the price will fluctuate above and below over the next week. Whilst writing this article the price has quickly fallen away from $51.2k and buyers came in to hold it above $50.5k. The bottom trend line support is a key area to hold.
As you can see from the above graph, the Bitcoin price also broke through the 20DMA. We’ll be on watch over the next few days for the price to hold above the 20DMA, currently at $49,739. Also, the 9DMA crossing above the 20DMA would indicate a change in trend. The 50DMA has rarely acted as resistance for Bitcoin over the year. When the price has fallen below this after drop offs, it usually breaks through as a new rally starts with strong volume and momentum. However, it has acted as support multiple times this year. This will be a support to watch if we do break above. For now, it is a good target for Bitcoin over the remaining week of the year. The 50DMA currently is around $55k.
For a slightly longer term view of Bitcoin, the weekly chart looks great for an entry as we look likely to set up for another bull run next year.
The signs look good for Bitcoin. If it rises to new highs, many alt-coins will also see great performance alongside it. Let’s see what opportunities the new year brings.