What happened: After four days of upward momentum, traders are now looking at how the price of Bitcoin (CRYPTO: BTC) will respond as it approaches a 50-day exponential moving average test. The price of the cryptocurrency fell below the key average in May of this year and the level (currently $35,115) has now turned into resistance.
Previous attempts to reclaim the 50-day EMA as a support have failed since BTC’s price plunged from a record high of nearly $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 2020 led to a huge rally for Bitcoin. At that point, 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 Bitcoin’s price comes after Tesla CEO Elon Musk, Twitter CEO Jack Dorsey and Ark Invest 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 owns Bitcoin.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.