How bitcoin is having a make-or-break moment?
CBW -External Analyst
May, 10 2021
Bitcoin is fronting a make-or-break moment succeeding a recent bout of selling, rendering to technical analysis
Though the cryptocurrency has made a comeback above its average price over the past 100 days, it’s still transacting below its 50-day moving average. Such a dynamic indicates an asset is approaching an inflexion point.
If Bitcoin can’t surpass its 50-day mean that presently sits at about $57,000 -- then it will force it into an era of volatility as the gap between the two trend lines meets.
Technical indicators advice breaking out might not be a relaxed feat -- Bitcoin failed to do so on numerous occasions last week.
Trading in the world’s leading digital asset has been variable in recent days after it hit a record high in mid-April exceeding $64,000. It’s down more than 15%. However, it rebounded earlier this week amid positive news, counting comments from Tesla Inc.’s chief financial officer that repeated the company’s commitment to the cryptocurrency.
The drastic relative to what we’ve seen of late, pullback positively was a point of eyebrows being raised. But at the end of the day, I contemplate the fact that things were able to recover and stabilize is a good thing, stated David Tawil, president of ProChain Capital.
The coin fell 1.4% on Wednesday following an announcement by the Securities and Exchange Commission that it will stay a decision on a Bitcoin exchange-traded fund. It was at around $54,586 as of 9:43 a.m. in Hong Kong Thursday.
Sam Stovall, the chief investment planner at CFRA Research, says that if the stock market continues its advance, he will predict Bitcoin to trail.
Despite its recent turbulence, Bitcoin is stagnant up 511% over the past year. Inflation and central bank policies have been its leading drivers through the past 12 months. According to Quant Insight, a London-based analytics research firm that lessons the relationship between assets and macro factors.
CBW - External Analyst