Bitcoin rises again above 200-day moving average
13:17, 9 August 2021
Bitcoin (BTC) recovered from early-day corrections and crossed above its 200-day moving average again on Monday afternoon, 9 August. This move, which took the top cryptocurrency close to $46,000, could signal a continuation of the bullish momentum in the past two weeks.
However, on-chain analysts are also waiting to see an increase in the transaction volumes, which are still rather low. Without new money coming in, the top cryptocurrencies could easily lose their recent gains if longer-term investors decide to take some of their profits.
The three-week rally that started from the 20 July bottom has boosted the investors’ confidence a bit, but many traders still have a fresh memory of the May bloodbath, when the crypto market lost half of its capitalisation.
Higher highs, lower lows
BTC’s price has surged about 55% since 20 July, when the $29,000 support level held firm. However, the leading cryptocurrency still trades approximately 30% lower than the all-time high of $64,895 set in mid-April.
If BTC finishes the day above the 200-day moving average – currently just below $45,000 – this could trigger a stronger move towards $50,000, which is the next significant level. This could also lead to fresh money coming into the market.
However, nothing is for sure yet. BTC will have to continue its recent series of higher highs and higher lows to keep the positive momentum, and turn it into a new bull market. Otherwise, sell-side pressure could return.
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Read more: Cryptos take a breather after sustained rally over the weekend
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