Bitcoin The price broke above its key average for the first time in two months, signaling strengthening bullish momentum.
The cryptocurrency’s price gained more than 3% to $73,700 in 24 hours, surpassing the 50-day moving average, which stood at $71,125 at the time of writing. The positive price action follows days of resilient performance amid the war in Iran and global stock market turmoil, particularly in Asian markets.
The 50-day moving average is one of the most widely followed momentum indicators in the market, which analysts have recently cited as one of the formidable resistance levels holding back gains.
“This indicator often signals a medium-term trend, and a confident break above it would be an important turning point in the coming days,” Alex Kuptsikevich, senior market analyst at FxPro, said in an email.
Note, however, that the bullish breakout does not necessarily promise a sustained uptrend. For example, the previous one, at the beginning of January, was followed by an 8% price increase, but the dynamic lasted only two weeks before sales resumed. Previous instances have also yielded mixed results.
For now, the breakout points to continued upside and perhaps increased volatility as prices approach the $75,000 mark. This is the level at which market makers – those who ensure a smooth trading experience by providing liquidity on an exchange – hold net short gamma positions worth billions, as CoinDesk noted on Friday.
So as prices climb towards $75,000, they will likely buy high to rebalance their net exposure to neutral. This could increase market volatility.
