Bitcoin

Bitcoin Gains Significant Momentum, Rising Above 50-Day Average

JP Buntinx | March 6, 2018 | 10:04 am
Bitcoin

Bitcoin Gains Significant Momentum, Rising Above 50-Day Average

JP Buntinx | March 6, 2018 | 10:04 am

Things are slowly coming together for Bitcoin as of right now. With the BTC price noting a 50-day high the current situation looks pretty interesting. While this may not indicate a bull market just yet, it is a positive sign altogether.

Bullish Bitcoin Price Momentum?

For the first time in a while, the daily Bitcoin price closed over the 50-day average. To most speculators, that may indicate a bullish signal to buy Bitcoin in the near future. It is not necessarily a sign of things to come, as this market remains incredibly speculative and volatile at all times. However, a small jump above this 50-day average can indicate big things are on the horizon for the BTC price.

Even so, the Bitcoin price is still struggling when looking at the bigger picture. Compared to late last year, the value is still down by nearly 35%. Recovering those losses will be challenging, even for the world’s leading cryptocurrency. This current Bitcoin price rebound comes on the heels of earlier signals regarding a potential value increase. Creating a new Bitcoin price rally will not be easy unless a major development occurs.

At the same time, the BTC price seems to have overcome the big correction earlier this year. With the value now remaining somewhat stable above $10,000, the situation doesn’t look half bad. That doesn’t mean we may not see further corrections, but for now, the bullish signals are converging. A new Bitcoin push can result in major value gains. For now, it seems the status quo may continue for quite some time to come.

Bitcoin is Still Evolving

Other bullish factors exist as well. We see the Bitcoin Dominance Index rise significantly over the past few days. Right now, the BDI sits at 41.6%. It is still a far cry from the 80% Max Keiser predicts, but it is certainly possible this percentage will continue to increase. Right now, it seems Bitcoin is the go-to cryptocurrency once again, whereas most altcoins are suffering from a lack of momentum. Especially Ethereum is looking rather fragile as of right now, for some unknown reason.

The successful increase in SegWit-based network transactions also plays a big role. While the number of transactions appears to go down, they are batched into bigger groups. That is a positive development, as it helps reduce overall fees and confirmation delays. For the BTC price, this may be another bullish factor in the long run. Once the world’s leading cryptocurrency effectively starts to scale, all altcoins will have to step up their game accordingly.

All things considered, things look pretty solid for Bitcoin as of right now. We see some bullish price signals, technical developments, coming together, and an overall lack of interest in most altcoins. It doesn’t happen often all of these stars align so perfectly at the same time. Whether or not it will lead to a BTC price push, remains to be determined. The overall momentum is certainly in favor of the world’s leading cryptocurrency as of right now.

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  • Erwin Witt

    03-06-2018

    Bitcoin continues to form a bearish rising wedge pattern on the daily chart which is part of the right shoulder of a massive head and shoulder topping pattern. The price has now come down but is not yet touching the lower support rail of the bearish rising wedge. I expect a bounce of off the support rail and a move back up to test the upper resistance rail of this bearish rising wedge. Given that volume has continued to decline into this rising wedge chart structure, I would expect a substantial pickup in volume to the downside on any failure of the lower support rail. For futures traders, continue to watch a price move to the 100 day moving average, If price begins to close below this average then enter short position with a stop loss 5% above the 100 day moving average.

  • Scott Cap

    “Technical analysis is easy to sell to idiots. No matter the stock, you
    can usually find a combination of “technical analysis indicators” that
    would have been true over a given period of time.”…Fscomeau

    Except where price manipulations occurs price movements are random as they are dictated by random events occurring at random times and not by the imaginations of technical traders. Any pattern that is put forth to predict a future price movement can easily be negated by new information exerting an influence on that price.

    • 4040s

      What if price is the combination of all these past “events”?

      • Scott Cap

        The current price is a representation of the summation of past random information as well as new random information coming into the market at random times. Buyers and sellers have short memories so usually the new information is greatly more weighted in their trading decisions.

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