Bitcoin’s performance over the past few weeks has been noted as ‘phenomenal’ by some people in the cryptocurrency industry. The positive sentiment was due to the world’s largest digital asset growing by more than 200 percent over the course of the past few weeks. Bitcoin has also managed to surpass expectations in the futures market as well, beating out mainstream competitors like the S&P500 and Nasdaq.
A recent analysis showed that Bitcoin closed above the 10-day moving average for 17 days in a row. This surge was only seen earlier when Bitcoin reached its all-time high back in December 2017. The close above the 10-day MA was a sign that the Bitcoin moving average was still in the positive realm, giving the cryptocurrency a chance to increase in value again. Some have predicted that the prospects for the continued hold above the resistance line were limited due to an overbought Relative Strength Index [RSI] on BTC’s daily chart.
At press time, the RSI for Bitcoin was rising towards the overbought zone which meant that the buying pressure was surpassing the selling pressure.
The 10-day moving average and the RSI were not the only parameters of Bitcoin in the green as earlier reports had shown Bitcoin’s 200-week moving average reaching new heights right before the cryptocurrency broke the $8000 support. The Moving Average Convergence Divergence also showed a sustained bullish turn for Bitcoin, as the signal line and the MACD line had undergone a bullish crossover.
Bitcoin’s moving averages are considered as an important factor in predicting its price as a majority of the analysts use it as a marker to plot its resistance and support. The coin’s performance has been so stellar that it broke the 50-week MA, 100-week MA and the 200- week MA in a much shorter time period than expected.
Tone Vays, a popular YouTuber and analyst had earlier predicted that Bitcoin would only cross the $6000 mark if it breaks above the MA, closed its valuation above the line and spend a complete candlestick above the line. Bitcoin not only did that but continued to surge to create record trading volumes on popular cryptocurrency exchanges.