After locking itself in a sideways/bearish range for about 20 days, yesterday Bitcoin managed to escape to the upside, generating some positivity throughout the crypto market.
At the time of this writing, BTC is trading at $31,598, accumulating a gain of 2.27% in the last 24 hours and 8.75% in the last 7 days.
Despite the fact that it is an interesting movement, it really hasn’t influenced the price chart too much yet, so we should be cautious.
Short-term trend momentarily passes by the hands of buyers
On the BTC vs USDT daily chart we see how the price managed to come out strongly to the upside from a lateral range, inclined slightly downwards.
Moving away with determination from this range, announces that we could see more gains in the short term. However, if we look to the left, we see that there is a dominant bearish force, which could soon curb the current momentum.
The 8-day EMA and 18-day SMA moving averages have just crossed to the upside, following the short-term trend.
The 2008 SMA is still bearish, and it is the one that should be overcome to think that the major trend has resumed. This moving average is close to $42,000, so there’s still a long way to go.
A steeper rise is needed to confirm that Bitcoin has resumed the major trend
Having achieved demand in the support around $30,000 is a good sign, especially for those who accumulate with an eye on the long term.
After 9 weeks of continuously falling for the first time in Bitcoin’s history, a breather to the upside was quite likely to occur.
However, we still see a dominant bearish force in the short/medium term. For this reason, it seems that what we are seeing is a setback to fall again.
Right now, the buying force is not decisive enough to confirm that the long-term trend has resumed. To assume that the bulls have effectively retaken control, they should first exceed $40,000.
If after a new fall the support at $30,000 is not maintained, the ground would be cleared to look for $26,300.
All our publications are of an informative nature, so in no case should they be regarded as investment advice.
Relate
