In recent times, Bitcoin suffered massive price drops that pushed its prices further below the 50-days EMA: this as happen continually since the death cross. One such drop took place on Tuesday when BTC opened the trading session at $30,839 and closed at $29,790, hitting a low of $29,278. The lowest the king coin got in almost one month is $29,278.
As of the time of writing, the largest coin by market cap is trading above $34,400. The current price of BTC is an indication that the coin is edging closer to testing the 50-days EMA. At this time in the market, across 0f the 50-days EMA could mean a lot for the market.
What It Could Mean?
A cross of the highlighted EMA could mean the start of another massive rally. A price rally will also reverse the death cross BTC experienced earlier and we may see a golden cross that will signal the end of the bearish dominance. Prices breaking intercepting the 50-days EMA have happened on several occasions.
The most recent of these crosses was in April when BTC rose past the EMA. The price as of that time was $54,889. Crypto largest coin by market cap peaked at $59,500 before it fell below the indicator under consideration: giving the coin an 8% gain.
A much bigger gain took place in October 2020. Bitcoin was trading above $10k when it flipped the EMA. The next time it crossed below the 50-days EMA was in April 2021 and it did that at $55,000. The Exponential Moving Average flipping resulted in the king coin gaining more than $40,000 between the two interceptions.
The question on every trader’s mind is when the cross will happen and how high will BTC get? If the market momentum continues the king coin will flip 50-days EMA in the next 24 hours. we may see bitcoin hit or exceed $40,000 if the coin sees a huge price rally
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