Anyone keeping an eye on the cryptocurrency markets in the last few weeks will know that they have seen a marked price increase. What’s more, other signals are also indicating that the cryptocurrency winter might be about to end.
Bitcoin is about to break its 200-day SMA
Moreover, this is not the only positive piece of news for those hoping for a recovery in the price of Bitcoin and the cryptocurrency market as a whole. Now, a Bitcoin trader is suggesting that the premier cryptocurrency may soon break an important technical indicator, signaling bullish performance.
Specifically, this report comes from Jonny Moe, a trader who is noting that Bitcoin’s 200-day simple moving average (SMA) is coming close to being broken for the first time since October of 2015.
Furthermore, an SMA is considered to be one of the key technical indicators used to predict the long-term performance of a given asset class or market. Lending further credence to the notion that this could herald a significant increase in the price of Bitcoin is the historical precedent set.
In fact, the last time the Bitcoin price broke its 200-day SMA cross back in 2015, it was followed by an atmospheric rise. Between October of 2015 and December of 2017, the Bitcoin price skyrocketed from approximately $250 to $20,000 – constituting a massive increase of around 7,900 percent.
Does this signal a bullish cryptocurrency rally?
Moreover, Moe went on to note that this bullish SMA cross – the first of its kind since October of 2015 – could signify further upward price movement.
”BTC about to have its first bullish 20-200 SMA cross since Oct 2015. Note that it took 2 of these crosses before the uptrend began. I’m not usually one to try and call out absolutes like ‘the bottom is in, but it’s certainly shaping up like that could be a real possibility.”
In addition to this, other signifiers have recently begun to indicate that Bitcoin might indeed soon see more bullish performance. For example, the cryptocurrency volume has suggested that the global demand for Bitcoin remains strong.
Consequently, rising volumes and an impending bullish break of the 200-day SMA cross would mean that both short- and long-term indicators paint a positive performance picture for Bitcoin.
Furthermore, a surge in Bitcoin pricing usually brings the rest of the market with it. This comes as Bitcoin is trading at a price point above $5,200. Although it remains to be seen for sure, any potential Bitcoin gains will likely also spill over onto the other major cryptocurrencies.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.