Institutions continue to be one of the biggest market pushers for Bitcoin and the rest of the crypto market. Trading actions over the last 24 hours do not change this claim as the price started gaining momentum after a large purchase.
In the early hours of Monday, Microstrategy announced that it increased its BTC holding by 3000 coins. While many frowned at the purchase, others claimed that the purchase was made at the top and the asset was due for correction.
It is worth noting that following the announcement, the top coin started a rally. It started trading at $51k and dropped to a low of $50k before rebounding. Afterwards, it broke its fourteen-day high at $53k and continued upwards.
As a result, it attained the most recent milestone. It peaked at $54,962. Afterwards, it dropped and is currently exchanging at $54,500. This is an indication that the coin is up by more than 4% over the last 24 hours.
The latest performance by the apex coin comes as a surprise to many as they were gearing up for some corrections. However, the most recent milestone is a clear indication that this never happened.
While discussing the next price action, they turned to indicators to offer insight. These metrics were bearish. For example, during the previous week, the top coin struggled to keep its price afloat. As a result, it created a new support, $50,800. Throughout price action over the last seven days, it traded around this new barrier.
In the wake of the asset’s failure to surge, the Moving Average Convergence hinted at possible price declines. This comes as the 12-day EMA arched downwards with the intent to intercept the 26-day EMA. The bearish divergence took place last week as well. Due to this, many geared for a possible price decline to $48k.
Aside from MACD, the Relative Strength Index supported claims of a downtrend. A few days ago, the asset under consideration was overbought. This meant it was due for corrections. This could take the apex coin trading at sub-$50k. However, all of these bearish predictions failed as yet again, fundamentals won.
Bitcoin Sees Trend Reversal
Following the sudden change in market trajectory due to the most recent hike, BTC may continue the surge as the bulls are most likely to send the top coin to its previous all-time high before a massive dump. Indicators, like fundamentals, are still playing a huge role in this scheme.
The first indicator to take into consideration is MACD. In response to the most recent increase, it is printing positive signals. This comes as the 12-day EMA intercepted the 26-day EMA from below in a bullish divergence. However, RSI says the apex coin is back above 70.
In the coming days, BTC may see more price increases. This may mean the asset revisiting $60k. This comes as no surprise as the last time the largest cryptocurrency traded within this region, it tested $60k but failed to flip it. This movement is clear on the weekly chart. Let’s see how prices perform in the coming days.
