What happened: Following four days of upward momentum traders are now looking to see how the price of Bitcoin (CRYPTO: BTC) will react as it nears a test of the 50-day exponential moving average. The price of the cryptocurrency dropped below the key average in May of this year and the level (currently $35,115) has now become resistance.
Previous attempts to reclaim the 50-day EMA as support have failed since the price of BTC plunged from an all-time high of almost $65,000 in mid-April.
Why it’s important: Coin Telegraph reports that Rekt Capital, a well-known digital currency analyst, notes that a break of the 50-day EMA in October of 2020 led to a massive rally for Bitcoin. That’s when BTC was trading near $10,000 and broke above the 50-day EMA for a run to its all-time high this year.
What’s next: The recent four-day rally in the price of Bitcoin comes after Tesla’s CEO Elon Musk, Twitter’s CEO Jack Dorsey, and Ark Invest’s founder Cathie Wood spoke at last week’s B-Word conference. The executives made positive comments about Bitcoin technology, with Musk revealing that his private rocket company SpaceX holds Bitcoin.
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