Traders may glean from today’s Bitcoin’s breakout above the 50-Day-Moving Average (MA) that it’s a sign of bullish times ahead. If the daily bullish candle closes above this level, Bitcoin may come out of this multi-month long consolidation period that we’ve been in and start trending upward with conviction.
The chart below shows that over the last two years, there were times that when Bitcoin broke out above it’s 50-day-moving average, a massive rally followed. Will history repeat?
Bitcoin’s breakout above the 50-Day-Moving Average
Note, there were also some 50-day MA fake outs as well. Technically, Bitcoin crossed above the 50 day average twice, only to quickly drop back below it. This time may be different.
Willy Woo, the infamous Bitcoin trader and analyst, has already indicated the consolidation period is ending. The confluence of a low Bitcoin supply and a decisive move above its 50-day MA are both positive signs.
Time will tell, but it appears Bitcoin is gaining some upside momentum.
If you are new to crypto and looking to only buy Bitcoin, check out our affiliate Swan Bitcoin and receive $10 just for signing up. They offer custody crypto, which is a good option for many whom are just starting out.
To learn more about Bitcoin, check out: Why Buy Bitcoin?