The recent fall in the cryptocurrency market, which has seen more than 50% slips in almost all major players, also triggered the sale of bitcoin, which fell from a record $ 65,000 in April to below $ 30,000.
However, after several weeks of decline, the cryptocurrency has picked up again in the last two weeks, trading today for $ 42,606, the highest level since May 18, Bloomberg. Analysts also looked at two important levels that the cryptocurrency had to break.
Bitcoin has broken important levels, but further growth is still questionable
These are the moving averages MA 50 and MA 100, which are a good indicator of the trend in the price of cryptocurrency, while their slope is determined directly by the average price over a period of time (in this case 50 and 100 days).
In general, however, the moving average is not used to predict the price trend of cryptocurrencies, but rather shows in trading the levels of support, or in this case the resistance, that bitcoin had to break. You can read more about this indicator as well as other useful indicators for bitcoin and other cryptomens in this article.
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Several analysts have confirmed that the important “inflection point” is the level of $ 40,000 that bitcoin is trying to maintain. According to Jonathan Cheesman, FTX’s head of over-the-counter and institutional sales of the FTX cryptour exchange, the growth of bitcoin suggests some support for the trend, but the cryptocurrency must first stabilize at this price level.
However, according to Edward Moya, senior market analyst for North America at Oanda Corp., the interest of retail investors is still strong, but institutions and companies are cautious in this regard and are waiting for real confirmation of the trend.
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This may involve staying at the current price level, as well as breaking the 200-day moving average of the MA 200, which currently stands at around $ 44,700.
The breaking of the great psychological limit of $ 50,000, through which bitcoin first got in February, is still in sight. However, according to some analysts, such values could again attract “new flows” and signal a change in the trend for the entire market.