Bitcoin is down today, but its wider trend is telling a different story.
The simple moving averages of its price over the past 50-, 100- and 200-days are one “crossover” away from a full bullish alignment, where the cryptocurrency’s short-, medium-, and long-term trends all point higher at once. It would be the first since 2025.
That alignment is represented by the 50-day average sitting above the 100-day, and the 100-day sitting above the 200-day. It’s almost there. As of this writing, the 50-day average, at $79,495, is well above the other two. Meanwhile, the 100-day, currently at $79,493, his rising and on the verge of topping the 200-day at $79,539. When that happens, all three will be stacked in an order that showcases bullish momentum across all three time frames.
Traders use moving averages to read the direction of a trend. When short-term moving averages sit above the long-term ones, it signals that recent prices are stronger than older ones, a sign of upward momentum.
The impending signal, therefore, suggests that bitcoin’s price recovery over the past three months is real. The token’s price has surged by more than 40% to $87,000 during the third quarter. Lately, the ascent has stalled at around $85,000 amid a sustained uptrend in the U.S. Dollar Index.
“To state a fact, the latest signal confirms the recovery has endured,” Subburaj said.
Some of the past alignments have marked the start of major rallies. One formed on Oct. 27, 2020, when BTC traded around $13,600, and held until May 2021.
Source link
