Bitcoin (BTC) Technical Analysis: 50 SMA Creating Resistance on 1W Chart, Golden Crossover Completed on 1D Chart

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The #1 largest cryptocurrency by market capital hit a new 6-month high during the early hours of this morning at 05:00 (UTC+1). A sudden surge in bullish momentum during the Asian trading session drove BTC up nearly 4% from $5,460 to the peak at $5,647, before correcting.

According to data from Coinmarketcap, Bitcoin’s 24hr trading volume spiked by more than $1.7 Billion as a result of the early rally.

The upside breakout ran into heavy resistance at the $5,650 level which was a critical resisting level for BTC during the November bear market. This particular price point is also reinforced by the 1 week 50-SMA (see below) which Bitcoin has not converged over since October 2015.

Together, these two resistances are likely to be a major test for BTC buyers in the short-term as they attempt to drive BTC back towards its pre-November price levels.

Right now the buyers are attempting to reclaim the psychological support at $5,600. On the 1D chart a golden crossover has formed between the 50 and 200 moving averages which is a strong signal to buyers that Bitcoin is finally out of its year-long bearish phase.

Bitcoin is currently up 4.68% against the US dollar and reigning as the best performing asset among the top 10 cryptocurrencies.

Bitcoin Price Analysis

On the 1W BTC/USD chart (below) we can see that the 50-SMA (blue line) finally met up with the price action during this morning’s uptrend, which caused a temporary pullback in buying momentum.

Despite the correction, the 1W MACD indicator is continuing to climb towards the signal line and momentum is also showing steady growth on the histogram.

On the 1D BTC/USD chart (below) we can that see that the 50 and 200 MA lines have converged for the first time since October 28, 2015 - when 1 BTC was worth $245.

This is a hugely promising sign for the world’s largest cryptocurrency after spending the whole of last year stuck in a bearish decline.

On the 1D RSI we can see a clear uptrend in buying momentum since November 19, 2018, as BTC continues to make increasingly higher lows. In the last 4 days the asset has also broken back into the overbought region above.

On the 1D MACD, the 12MA has recently converged back over the 26MA which is another promising sign that bullish momentum is increasing behind this asset.

From these signs it appears very likely that Bitcoin will continue to climb toward the main resistance area (red shaded zone) between the $5,650 and $5,850 levels, off the back of this renewed bullish market sentiment.

Bitcoin Price Targets

All ROIs are calculated from Bitcoin’s current value at $5,609.00 (AToW).

PT1: $5,850 (4.30%)
$6,100 (8.75%)
$6,480 (15.53%)

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