Bitcoin Price Break Above 200-Day MA Is This The Start of A Bull Market
Bitcoin price three-day rally might get a boost as the crypto pair breached the 200-day moving average. The recent correction from the yearly highs at $9185 stalled at the $8200 zone which now forms a strong base for the bitcoin. The last three trading sessions BTCUSD makes higher highs and higher lows and managed to break above the 200-day moving average which might signal the beginning of a rally above the $10000 mark.
In Davos, the World Economic Forum (WEF) announced the creation of an international consortium to implement a governance framework for digital currencies and stable coins. The consortium will bring together government officials, financial institutions, developers and other members of the global digital community to determine what sort of governance around cryptocurrencies can best support the goal of financial inclusion. Also last week, several major central banks decided to form a working group to share experience on cryptocurrencies.
Bitcoin is 0.85% higher at $8970 as the rebound from the $8200 low continues. BTCUSD managed to break above the previous consolidation range ($8200 – $8800) while earlier breached also above the $9000 mark. Bulls no are in control as the bitcoin pierced also the 200-day moving average. If BTCUSD holds above that level for two trading sessions then that might be the beginning of a new leg higher.
On the upside now, intraday resistance will be met at $9,150 the daily high. If bitcoin breaks above, the next resistance stands at $9189 the high from January 19th. Next resistance is at 9375 the high from November 7th.
On the downside, initial support will be met at $8,894 (higher low) the daily low. If bitcoin breaks below, the next support stands at $8,550 the low from yesterdays trading session. In case the level gives up then the strong support base at $8200 will be the next obstacle for the bears. might open the way for a test of the 100-day moving average at $8001.