Bitcoin (BTC) Price Must Break 200-Day Moving Average to Continue Bullish Rally
For A Bullish Rally To Continue, Bitcoin’s Price Must Break 200-Day Moving Average
Following an increase of as much as 10% on Monday, bitcoin broke out of a triangle formation, which if holds, one analyst said could point to another leg higher, testing another important level.
“This price action—shown on the chart below—was quickly sold-off but did decisively break the downward triangle, and needs to be watched carefully,” wrote Nick Cawley, markets analyst at Daily FX. “If BTC can close above this triangle over the next few sessions, it will indicate renewed bullish sentiment that could push the price back to the 200-day moving average and the spike high between $7,200 and $7,300.”
So far, bulls have failed to break the 200-day moving average on four separate occasions this year, in March, May, July, and early September. The price is currently moving towards that critical price barrier, which will prove to be an important test for bulls looking to reverse the persisting downtrend.
Altcoins Gaining Over Bitcoin
Bitcoin’s price has been caught in an abnormal trading range over the past month, ranging between $6,200 and $6,800, only briefly breaking through the range on its latest spike up to $6,900. Some analysts believe that the low volatility is a sign of a maturing market, while others think that the cryptocurrency is gearing up for a big move, in one direction or another. During this period of unusual ranging, multiple altcoins have posted gains, recovering from their recently seen year-to-date lows.
XRP has been one of the best performers of the month, posting significant gains due to the recent release of Ripple’s XRP-based xRapid cross-border settlement product. One month ago, XRP was trading at $0.27. Since then, it rose to highs of $0.77 before settling and stabilizing at its current price of $0.47.
Ethereum, however, has not performed as well as many other major altcoins, closely replicating Bitcoin’s trading action. Over the past month, ETH has been caught in a trading range between roughly $200 and $250, currently trading at $208.