Bitcoin’s moving averages suggest strong price strength

Bitcoin’s moving averages over different periods have risen, leading to better prospects for its future price and the likelihood of no steep declines anytime soon.

Analysts recently noted how Bitcoin’s moving averages had surged in the last few months. The token’s 200-day moving average has also hit $50,000, indicating firm price strength. This moving average can also hint at possible future trends for Bitcoin. On the other hand, its 100-day moving average has also floated above $55,000 for a while.

In the last 200 days, the optimistic trend lines started with the hype around the spot Bitcoin ETFs in 2023. Since then, their approvals and the Bitcoin halving event have carried the positive momentum forward. Meanwhile, there has also been a dip in the spot Bitcoin ETF outflows, which may have benefitted BTC’s recovery. The Bitcoin ETF outflows had earlier grown higher in late April.

In the days forward, despite high volatility, BTC could keep trading above its moving average. It has already closed the gap with its 20-day moving average and is trading above it. Even if it trades sideways on some days, its long-term perspectives have been at the highest in over two years. 

However, Bitcoin continues to face intra-day volatility in its current trading range, with its support at $62,000 and resistance level at $65,000. A price breakout could occur in the next few days.

BTC/USD 1D price chart

Bitcoin is currently trading at around $64,100 on May 7, 2024, with BTC/USD trading lower by a margin of 1.59% in the last 24 hours. Bitcoin’s market cap was trading at around $ 1.26 trillion in the last 24 hours.

BTC/USD is trading above its 20-day EMA (63,862.48), as BTC’s 24-hour volume was at around $29.5 billion. The global crypto market cap decreased by around 1.7%, trading above $2.35 trillion. BTC’s year-to-date returns are at 52.89%.

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