Bitcoin’s ($BTC) price moving over its 50-day moving average earlier this month suggests that the flagship cryptocurrency has broken its downtrend and is entering another rally, according to a research firm.
As first reported by Business Insider, the Bespoke Investment Group has said in a note that the flagship cryptocurrency bitcoin is moving out of a slump and made advances in fifth consecutive sessions to now trade at $44,700. At the same time, the firm said, equities have hit a “speed bump since the start of the year.”
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Over the last few days, the price of BTC moved up over 20%.
Bitcoin’s price rise has seen it move over its 50-day moving average, a key technical level, suggesting its downtrend is reversing. A moving average is a stock indicator commonly used in technical analysis that helps smooth out price data and eliminate the impacts of “random, short-term fluctuations” on the price of an asset over a specific time frame
As reported, in a note sent to clients Mark Newton, a strategist at Fundstrat, said the rally was an important breakout that could lead to “further near-term strength. Newton added that “initial upside targets lie at $45,000 and then $51,100.”
Bespoke analyzed bitcoin’s price performance after closing above a 50-day moving average, going back as far as 2015. According to the firm, the cryptocurrency has tended toward “significant outperformance” relative to the norm in the week, month, and 3-month periods after closing above the key technical level.