The market surge which started on Sunday continued yesterday, taking Bitcoin to a new year-to-date high $8,800 as altcoins in the market also rocketed amazingly. Investors on their own side also had reasons to smile with hopes for a better tomorrow.
However, a number of analysts have failed to recognize the present trend as a rally that will soon give us a moon shot.
Others, while capitalizing on a number of factors which include history, believe the bull has been ignited, and we won’t bottom again. Veteran trader Peter Brandt, in his own view, thinks it is a 50-50 Scenario.
Bitcoin Closes Above 50 Week Moving Average
Bitcoin has been displaying nice moves in the market since the start of April with slight breaks that made many aver that it has reached another psychological barrier.
Nevertheless, Bitcoin continues to jail break each resistance after a slight price retracement, but the rally initiated by the crypto king in the last 72 hours is quite outstanding.
Bitcoin was pushed above the $8,800 support level for the first time since June 2018. In addition, the bull rally pushed Bitcoin above the 50 week moving average for the first time since 2016.
Bitcoin closing above the 50 week MA is such a remarkable drive for the crypto coin as it signals positive change towards the bull side of the market.
Looking at the market chart of the cryptocurrency since 2011, we can easily observe that the present rally marks the 4th closure Bitcoin had above the 50 week MA.
4 Weekly Closes above the 50 Week MA Never Fail to Initiate a Bull Run
While the yesterday’s drive marked the fourth consecutive times Bitcoin managed to close above the 50 week MA, there have only been three records of 4 weekly closes above the 50 week MA.
The first one which happened in 2012, recorded 3 weekly closes above the 50 week MA, and the remaining three were 4 weekly closes above the MA.
The 50 week Moving Average is used for long term price forecast and it helps assets set new support level. According to history, the 4 weekly closes above the 50 week MA has always been succeeded by a bullish market run.
BTC: Yesterday's close marks 4 consecutive weekly closes above the 50 week moving average. Four weekly closes above the 50 week MA has never failed to initiate a bull run. pic.twitter.com/EM8UaeWVrD
— Nunya Bizniz (@Pladizow) May 27, 2019
Therefore, if history repeats itself, Bitcoin has probably set a new support above the $8,600 level, and we are already in for another long-term bull run.
Disclaimer: Article not intended for financial reasons, it is written solely for informational and educational purposes. Investing in cryptocurrency and other coins are dangerous due to the volatility of crypto assets. Take caution before investing in any digital currency.