It looks like all stars have aligned for the Bitcoin price to go up with one more technical indicator now showing a bullish bias. However, another potential breakout that could send Bitcoin’s price to new yearly highs is still up in the air.
Another technical indicator turns bullish
After a minor pullback, Bitcoin is back on track with its price recently surpassing the $8,000 mark yet again. That recent uptick was especially significant for the number one cryptocurrency since the 200-day moving average (MA), one of the most accurate long-term indicators of market sentiment, turned bullish for the first time in more than 12 months.
While this is undeniably a great sign for the bulls, one shouldn’t rule out that the BTC price might experience another retracement in the short term. The 200-day MA turned bullish because of the recent price rally (overall, Bitcoin increased by more than 110 percent in 2019). If the BTC price dips again, the indicator could start tilting towards bearish sentiment.
Not so fast, Bitcoin bulls!
At this point, BTC is well-positioned to breach the $8,500 mark, reaching its highest price since June 2018. The ‘crypto king’ failed to break above this major resistance level on multiple occasions in recent weeks.
On the flip side, the declining trading volumes could play right into the hands of the bears. The Bitcoin price could fall back to $6,000 in case a potential double-top scenario comes to fruition.