Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Bitcoin's 50-day exponential moving average (EMA) is about to cross above both the 100 EMA and the shorter-term 26 EMA, a technical signal that could be as reliable as, if not more so, than the traditional golden cross in terms of its implications for momentum. If market circumstances remain stable, this convergence might signal the start of a strong rally. A popular dynamic indicator of midterm trend momentum is the 50 EMA.
When the 50 EMA crosses above the 100 EMA, it reflects a sustained shift in buying pressure. Even short-term traders are following the trend if it also surpasses the faster 26 EMA. This is a strong confluence that indicates confidence is rising generally. The 50, 100 and 200 EMA are all still well above Bitcoin's main moving averages on the chart, and they are starting to stack in a bullish manner.
The asset is currently consolidating between $103,000 and $104,000 after recently breaking above the $100,000 major resistance level. Based on its structure, Bitcoin appears to have already formed a base and is currently halting before possibly continuing on its upward trajectory. The RSI is currently stabilizing around the 70 level, staying out of overbought territory. In the past few sessions, volume has tapered off, which is common during consolidation phases, particularly following a significant breakout.
It is important to remember that Bitcoin has held steady at these levels in spite of aggressive whale activity and short-term profit-taking that aims to stifle rising momentum. Traders should closely monitor whether Bitcoin can maintain its value above $102,000 in the near future. Bulls would have a high-conviction entry point if this level were to be successfully retested and the 50 EMA crossed both the 100 and 26 EMA.
This is a momentum signal supported by structure sentiment and market context, not just a traditional technical setup. If verified, this might push Bitcoin closer to its next major objective, which is to retest the all-time high of about $109,000.
Vladislav Sopov
Dan Burgin