In accordance with the recent technical analysis, the leading cryptocurrency Bitcoin is currently facing a make-or-break moment following a recent spell of selling. Despite being traded above its average price over the past 100 days, bitcoin is still trading below its 50-day moving average.
Bitcoin Nearing an Inflection Point, Technical Analysis Suggests
As suggested in the technical indicators, the Bitcoin cryptocurrency has rebounded above its 50-day mean which, at present, is sitting at about $57K, then it might be in for a period of fluctuations as the gap between the two trend lines converges.
Moreover, the breakout might not be an easy thing as Bitcoin fails to do so on several occasions last week.
In recent times, bitcoin trading has been rough after it hit a record high in mid-April above the level of $64K.
Since then, the asset is down over 15%, though it bounced back earlier this week amid some positive news. The positive news included the comments from the CEO of Tesla Inc. that restated the commitment of the company to cryptocurrency.
David Tawil, the President of ProChain Capital, said:
“The drastic — relative to what we’ve seen of late — pullback certainly was a point of eyebrows being raised, but at the end of the day, I think the fact that things we’re able to rebound and stabilize are a good thing.”
In addition to this, he said:
“It shows real power to the token, the staying power to the asset class.”
Securities and Exchange Commission on BTC ETF
The Securities and Exchange Commission of the United States made an announcement on Wednesday regarding the delay on a Bitcoin ETF, which ultimately led to the fall in the price of Bitcoin to 1.4%.
Sam Stovall, the Chief Investment Strategist at CFRA Research, believes if the stock market continues to gain the cryptocurrency market will follow the trends.