The 50-day moving average is traditionally seen as being a considerable level of support and resistance by crypto traders as it defines the general direction of the expected market dynamics in the following weeks.
Bitcoin’s current price of $43,685 exceeds the 50-day moving average (that is about $42,810), indicating the dominance of bullish market expectations among traders. This price stir is the first such occurrence since November, and it has largely become possible due to the Bitcoin price upsurge in February that constitutes the highest positive price change since November.
Head of Asia-Pacific at Luno Pte, Vijay Ayyar expects the following major resistance level is around $46,000-$47,000, considering the previous history of Bitcoin price changes. The major technical contributions to such positive market reactions refer to the better than expected dynamics of the labor market in the country as well as Amazon’s strong financial perspective. Considering the close correlation between Bitcoin’s price and stock market dynamics in recent weeks, investors have extrapolated their optimism to the crypto market, thus contributing to the proportional increase in BTC price).
The current most plausible scenario as suggested by market analysts is the steady price growth to $45,000 with the subsequent increase up to $51,000. The current market situation and investors’ consensus on the further price changes demonstrate the high likelihood of this scenario in the absence of any serious negative shocks in the external environment. The dynamics of other major altcoins may follow Bitcoin’s trend, reflecting the growing interest in the crypto industry and innovative blockchain technologies.
The major gainers in the past 7 days include Shiba Inu (47.2%), XRP (29.3%), and Polygon (15.8%). Overall, the dynamics of other cryptocurrencies reflect both the strategic belief in specific crypto technologies and growing optimism in regards to meme tokens that are especially sensitive to positive market news and expectations.
While the structure of the main crypto gainers may be subject to change in the following weeks, Bitcoin’s growth and appreciation are crucial for the sustainable development of the entire industry and the growing capitalization of other crypto projects in the following months.
Despite the prevalence of positive price signals, traders should still remain conscious of potential corrections as the market still expects the major regulatory and monetary measures to be taken by the Federal Reserve in March. The higher than expected base interest increase may cause crypto investors to reconsider their risks’ acceptance.