- Bitcoin price is expected to begin its bullish momentum is faces another breakout
- The flagship crypto assets are close to testing a 50-day exponential moving average
- The same resistance level as the current one was observed back in October 2020
- Following the last similar test, bulls are awaiting another breakout
Bitcoin price has seen bullish days since the beginning of this year. However, in mid-May, the coin faced heavy turbulence losing its value by more than 50%. Chinese crackdown on crypto firms and Elon Musk’s concerns regarding mining operations are among the main reasons behind the market crash. However, over last week we have observed that the prices in the Bitcoin market were gaining back their bullish rally. The coin designed by Satoshi Nakamoto inched toward previous year’s support, with traders expecting more gains if a breakout occurs.
Bitcoin price is close to testing 50-day exponential
Last week the Bitcoin price saw some positive movements. A four-day streak of the price has brought the coin closer to testing its 50-day exponential moving average (EMA). In addition, the strength behind Bitcoin’s bullish performance of last year as support flipped as resistance during the BTC crypto market crash.
Notably, while flipping, the bias capped the digital currency from extending its upward moves several times.
Simultaneously, BTC’s drop from $56,900 to below $30k prompted bulls to acquire the dip. Resulting in the fact, the coin jumped to $40k, thus finding its momentum exhausting right near the 50-day EMA. It is also observed that the scenario has repeated itself several times after the corrections.
BTC tests the same resistance after nine months
Rekt Capital, a well-known analyst in the cryptosphere, has noted last year’s fractal. The analyst determined potential outcomes from the ongoing Bitcoin price action. The trader also highlighted that the movement seemed similar to October last year. Indeed, the price of the flagship cryptocurrency tested the 50-day EMA as resistance in October last year. At the time, the price of the virtual currency was trading below $10k, where it skyrocketed to achieve an all-time high level near $65k.
According to Rekt Capital, this was when Bitcoin price formed an identical fractal of the current scenario. Indeed, there are high possibilities that this fractal might repeat as the prices test the same resistance level.
Gains came with the B-Word conference
Last week, the Bitcoin price closed to reclaim its 50-day EMA. Notably, the world’s most popular crypto asset was off to end the seven-day session by more than 8%. The majority of the gains came as some celebrities took turns to speak favorably about the digital coin and its underlying technology.
The B-Word conference had featured three Wall Street Biggie’s last week. Such profiles included Elon Musk, the CEO of Tesla, Jack Dorsey, the CEO of Twitter, and Cathie Wood, the founder of Ark Invest. In addition, they had shared their views regarding the future of the flagship cryptocurrency.
Last week, he revealed that his private rocket company SpaceX holds Bitcoins. Moreover, he also hinted that Tesla would soon resume the acceptance of Bitcoin in exchange for its products. Musk’s comments were already affecting the prices in the crypto market. And the latest reveals of crypto proponent has helped fuel the market.