Bitcoin – Daily Chart
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Investing.com – Accentuating a rally most of which came on Sunday night, the extended its gains to a high of over $48,000 on Monday as the cryptocurrency enjoyed a positive backdrop from a market perspective. news as well as from the point of view of technical analysis.
No news in particular seems to explain the acceleration of the rise since Sunday evening, but several positive factors can be noted since last week.
For example, Goldman Sachs (NYSE:) last week became the first major US bank to trade bitcoin over-the-counter. Famous investor Ray Dalio’s Bridgewater company also said it was set to invest in a cryptocurrency fund.
the network behind the Luna cryptocurrency, is also building a reserve fund of $10 billion in bitcoins for its stablecoin.
It will also be recalled that Russia has publicly suggested that it could accept Bitcoin payments for its and its gas. More generally, the idea that Russia could use cryptocurrency to evade sanctions also supports cryptocurrency.
As for the next economic events likely to influence Bitcoin this week, the personal consumer expenditure report and the NFP employment report will be watched.
What is at stake is that strong numbers could argue for a 0.50% rate hike at the next Fed meeting, which would be positive for the Dollar but negative for Bitcoin.
Bitcoin Technical Analysis: Bullish Signals Vs Key Obstacles
From a technical analysis perspective, there is no denying that Bitcoin’s profile has improved significantly with the bullish acceleration seen since Sunday night. Indeed, Bitcoin has crossed the resistance zone of $45,000, also extricating itself from a double top pattern, and at the same time from a triangle, as seen on the daily chart attached to this article.
However, significant hurdles are now very close, suggesting a risk of a correction in BTC. The 200-day moving average, currently at $48,300, effectively halted Bitcoin’s rise yesterday.
In addition, if this indicator is crossed, Bitcoin will quickly find itself facing other even more important obstacles, namely the major psychological threshold of $50,000 and the graphic resistance of $52,000.
To sum up, technical analysis therefore suggests short-term caution when buying Bitcoin.
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