Bitcoin continued its upward trend during the weekend. On Saturday, January 21, the asset traded above the $23,000 margin for the first time in 6 months. The asset tested that zone for most of that day, but by the end suffered a retraction back to $22,900.
On Sunday, BTC once again tested the $23,000 for two separate times. This indicates that the market is likely picking up steam in order to continue its upward trend for the upcoming days.
As of right now, $BTC trades at around $22,860. The asset’s performance in January has been nothing but astounding.
Leading the entire crypto market, Bitcoin picked up nearly 39% of growth since the turn of the year, going from $16,650 on December 21 to today’s $22,860.
And that’s not to say that the currency did not have to go through difficulties in this January rally. Last week, reports about the incoming bankruptcy of the major crypto lending firm “Genesis” were expected to create a significant retraction in BTC’s price.
However, so far that is not what happened. The asset’s favorable momentum, paired with the Federal Reserve’s indications of a future “loosening” of interest rates made bitcoin go through one of the best months in years.
Bitcoin Breaks 200-Day Moving Average
On top of the most recent rally, BTC also broke another milestone this month.
Due to the nearly 39% growth in the span of 23 days, the asset just broke above the 200-day moving average.
“Bitcoin has broken through its 200-day moving average for the first time in over a year due to the sharp rally seen over the past 2 weeks,” says Jack Neureuter of Fidelity Digital Assets Research.
When a currency like Bitcoin breaks above a 200-day moving average, that indicates a strong bullish sign for the cryptocurrency.
What Is A Moving Average?
A moving average is a technical indicator that tracks the average price of an asset over a specified period of time, in this case, 200 days.
When the price of an asset breaks above its 200-day moving average, it indicates that the asset’s price is trending upward and that it may continue to rise in the future.
This is often seen as a sign that the market sentiment for the asset is positive and that more buyers are entering the market. Additionally, breaking above a key moving average like the 200-day is considered a long-term bullish signal, and traders and investors may use it as a buy signal.
However, it’s important to keep in mind that past performance is not necessarily indicative of future results and that the price of Bitcoin and other cryptocurrencies can be highly volatile.
