Bitcoin recently broke above the 50-day simple moving average (SMA), a widely observed indicator of a short-term uptrend. This breakout is validated by technical indicators, including a new bullish crossover on the daily MACD histogram and a bullish crossover between the 5 and 10-day SMAs, signaling increasing bullish momentum.
The recent rise in BTC price is likely fueled by market expectations of a Federal Reserve rate cut expected this Wednesday and positive developments in the current trade tensions between the United States and China.
Despite these encouraging signs, caution is warranted as the CoinDesk Bitcoin Trend Indicator (BTI), which gauges the presence, direction, and strength of momentum, continues to signal a downtrend. Additionally, BTC prices remain below the Ichimoku cloud on the daily chart, a key resistance level. A decisive move above this cloud would confirm the bullish recovery and potentially pave the way for a rally towards $120,000 and beyond.
