BREAKING: Bitcoin Reclaims 21weeks and 200 day MA - First Major Step in Bull Market Continuation - Expect 56K Soon.

 #OPINIONLEADER# 

ABSTRACT:

The price of Bitcoin has soared higher since the month of August and has reclaimed It's 200day moving average at 48600 just last week. A 'Golden Cross' has been spotted for Bitcoin showing the price is set to hit the next strong resistance at 56K. This can only take place once the psychological level of 50K is overcomed this week.

The Crypto market has experienced a resurgence of the Bullish market since the beginning of this month of August. Bitcoin has registered huge gains of more than 76% since it's all-time lows (ATLs) of 30k and $28,800 created in the months of May and June respectively. After having suffered  great volatility for the most part in the last 90-days, the flagship of a Bullish market for crypto has showcased once more, with such a high level of recovery. Equally, Bitcoin has broken its 200-day moving average  at $48,600, earlier this month and currently aiming higher above it. At present, there exists a psychological barrier to be overcomed at 50k and any break above it will lead us to the next resistance at $52, 200 and $56,000 which is the second resistance if the Bullish momentum remains unstoppable. The first attempt to break this 50k psychological barrier which is set to revive great confidence among investors was stopped short at $49,800 over the weekend. The price has been ranging at this point and we expect a break out of this region in this new week. Otherwise a retest of the previous supports at 48k and 46K might be experienced.

Interestingly, the new revival of the Bullish run has once again taken the total market capitalization of this relatively nascent Crypto space back above the $2.5 trillion threshold. These huge figures can in large part, be attributed to increased institutional adoption that has been witnessed in this industry in the recent past, counting for consecutive two months now. Some of Bitcoin’s most significant institutional backers include Michael Saylor-led Microstrategy, EV manufacturer Tesla and crypto-focused investment firms Galaxy Digital Holdings and Voyager Digital. Equally, a number of traditional banking institutions have entered the crypto world recently such as State Street Bank the second oldest Bank in the US, Wells Fargo - one of the oldest banks in the United States, has been the newest member of a list of growing financial institutions to offer its wealthy clients indirect exposure to Bitcoin and other Cryptocurrency.

Other prominent financial institutions that also offer a range of crypto-focused financial offerings include JPMorgan, BNY Mellon, Morgan Stanley, Bank of America, Goldman Sachs, among many others.

Bitcoin “golden cross” spotted indicating some long term accumulations and more Bullish Price movements.

 

The daily accumulations of Bitcoin by strong institutions and private investors especially the ones we have mentioned above, gives obvious signal that Bitcoin is currently in for a big uptrend. Further supporting this is the Bitcoin GOLDEN CROSS spotted by Glass node. This blockchain analytics platform has recently reported that a “golden cross” formation — between the 30-day and 60-day moving averages of Bitcoin’s hash ribbon — has been  observed showing an imminent Breakout in the Upward direction. 

A 'golden cross' occurs when the short-term average value of an asset rises above that of its average value in the long term. As can be seen from the chart above, the comparison between BTC’s 30- and 60-day hash ribbons indicates that trading volumes are on the rise once again. It is also important to highlight that the same formation was spotted before Bitcoin rallied back in January 2019 and 2020, and in March 2020 and December 2020.

Consequently, we expect a higher Upward trend for Bitcoin in the coming weeks. The first point to break out from is the 50k psychological price. After this, the first resistance to watch out for is $52,100 and  a stronger second resistance at $56,000. Once these regions are surmounted, then we can confidently expect a revisit of the ATH at 64K earlier this year in February and April before the sudden fall.