Arman Shirinyan

The Key Support Zone Could Take Bitcoin To New Highs

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Reaching a Potential Support Level What could be the future for the first cryptocurrency?

After a rapid rise in price, Bitcoin, the first cryptocurrency, has broken through numerous significant resistance levels, leaving the majority of market participants feeling euphoric and leading to a shift in sentiment.

Reaching a Potential Support Level

In the absence of buying pressure, Bitcoin failed to break the 100-day moving average, which stood at $45,800, and bounced back to the $43,500 zone, testing its 50-day moving average.

The 50 candle period moving average usually acts as a key support level during an uptrend. The price tends to reverse when a rally cools and then continues to rise as buyers start injecting more money into the market.

The only problem with the current market situation is the absence of a “golden cross” signal on the daily Bitcoin chart. A 50-day moving average usually acts as a support after crossing a 200-day moving average. The “golden cross” is considered an indication of a long-term trend change.

The last time Bitcoin experienced a “golden cross”, it rose to the current all-time high of $68,000 reached in November 2021.

What could be the future for the first cryptocurrency?

There are currently two possible scenarios for the first cryptocurrency: a complete reversal of the rally or a possible rise in current support. The rally could come to an end if the cryptocurrency falls below the short-term moving averages which are currently between $42,000 and $41,0000.

At the time of writing, Bitcoin is trading at USD 43,746 as it continues to trade sideways.