Strong start to 2020 for Bitcoin
05 Feb 2020
Bitcoin has enjoyed a price surge since the beginning of the year, posting a gain of nearly 30% from the $7,000s to the $9,250 in just a few weeks.
This would appear to signal an end to Bitcoin’s 50% downward trend throughout the second half of last year.
Bitcoin’s daily chart has recently registered a key technical signal, with the 50-day moving average surpassing the 100-day moving average, thereby creating a bull cross formation.
According to cryptocurrency trader, Blockchainblitz the last eight times this technical signal has been since 2014, a “rip upward followed.”
Analysis from News BTC of the specific moving average cross revealed this last occurred when Bitcoin was at $5,800 at the beginning of last year, preceding a 140% move higher.
Furthermore, other factors to suggest the world’s largest cryptocurrency by market cap could regain a bull trend are that Bitcoin’s weekly Relative Strength Index exceeded the key 55 range. History has shown us this has been a turning point for the market. Indeed, when the Relative Strength Index is over 55, Bitcoin is technically in a bull market.
In addition, Bitcoin has moved above the 200-day moving average, another indication of a bull market.
This is a view echoed by deVere CEO and founder Nigel Green, who earlier this week said Bitcoin’s price will likely rise until coronavirus peaks: “It’s plausible that we’ll see the price of Bitcoin continue to increase until the coronavirus reaches a peak.
“The price of the world’s largest cryptocurrency by market cap gained over 10% in a week and is also up 30% since the end of last year. This makes 2020 the best start to year for Bitcoin in eight years.
“The continual upward trajectory of Bitcoin’s price parallels the spread of the coronavirus. The more cases confirmed, the more countries affected and the bigger the impact on traditional financial markets, the more Bitcoin’s price has increased.”