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Breaking News: Bitcoin Price Tumbles Toward $98,000: What’s Driving The Drop And What Lies Ahead
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Breaking News: Bitcoin Price Tumbles Toward $98,000: What’s Driving The Drop And What Lies Ahead

The Bullish Bitcoin Crossover No One Is Paying Attention To

Keshav Verma
Keshav Verma
Last Updated: June 11, 2024 1:57 pm
3 mins read
Bitcoin Bullish

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The Bitcoin 20 DMA seems to have just crossed with the 50 DMA, here is how it might be bullish for the cryptocurrency.

The Bitcoin Bullish Crossover

As pointed out by a BTC technical analyst on Twitter, two important indicators of the cryptocurrency have just had a crossover.

The two metrics are the 20 daily-moving average (DMA) and the 50 DMA. Before looking at the data, it’s best to first get a grasp of both these indicators.

Moving averages (MA) help smooth out the price data for Bitcoin as they take averages of the price over a specific period and constantly update or “move” forward.

The indicator “smooths out” the price as it mitigates effects of small fluctuations on the price, giving a smoother curve.

The 20 daily moving average (DMA) averages the daily price over 20 days, while the 50 DMA uses data of the past 50 days.

Related Reading | On-Chain Data Shows Bitcoin Daily Transaction Volumes Are Up 94%, Rally Might Not Be Over Just Yet

Now, here is the chart that shows the variations in the 20 DMA and 50 DMA for BTC:

Bitcoin DMA

The BTC 20 and 50 DMA have their first crossover since May

As the above graph displays, the Bitcoin 20 and 50 DMA indicators are having a crossover right now where the 20 DMA curve seems to be shooting above the 50 DMA.

The last time this type of crossover happened was in October 2020, right before the massive bull run where BTC set a new all-time-high (ATH).

However, these two crossovers aren’t the only ones on the graph. There is another, different type of crossover where the 50 DMA line flies above the 20 DMA curve. This one occurred in May, right at the top of the rally.

From these observations, it looks like when the 50 DMA overtakes the 20 DMA, a bullish trend might ensue. But if the reverse happens, a bull run could be there.

BTC Price

At the time of writing, BTC’s price is moving around $39.3k, up 1% in the last 7 days. Over the past month, the crypto’s value has increased by 16%.

Below is a chart that shows the trend in the price of Bitcoin over the last 6 months:

Bitcoin Price Chart

BTC's price seems to be going back up after a dip

After enjoying a couple of weeks of uptrend after a period of little volatility, BTC again seemed to be going down. However, today the coin has taken a reversal for the better as the coin seems to be quickly climbing back up.

Related Reading | Trend Line Touch Could Send Bitcoin On A Tear

It’s hard to say how far the crypto will go this time as the $40k resistance will again prove to be a challenge. BTC could get stuck in a rangebound market below the $40k mark and slowly lose its volatility again. Though if the DMA crossover is anything to go by, a bull market might be ahead.

Featured image from Pexels.com, charts from TradingView.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Read more

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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