Bitcoin [BTC], now reinvigorated and recharged, once again affirmed its position as the king of the cryptocurrency market by climbing out of the price swap and into the bullish heaven of $9,000. After days of sluggish movement, the bullish swing towards the end of the previous week not only broke the ceiling, but several ceilings above it.
With the market and the market leader, Bitcoin, now on a 13-month price high, it does pay dividends to look back and mull over the coin’s rise. The bull run was initiated on April 2, when the price saw a 17 percent daily gain and surged over $5,000. Since that unprecedented high, the market has broken multiple psychological and resistance levels on the back of several announcements relating to adoption and distribution implementations.
While there seems to be no concrete trigger for this price surge, a prominent analyst in the space suggested that the happening of a key technical event may have buoyed the BTC market and pushed it onto a positive price path. Fundstrat’s Head of Research, Thomas Lee, opined in a recent tweet that the “trigger,” albeit from a price chart point of view, was the 200-day moving average being overtaken.
Lee added that given the rapidity of the price rise, the only strategy that makes sense was going and staying “long,” as traders who have been shorting Bitcoin are facing stiff losses over the past few months.
His tweet read,
Bitcoin has acted very differently since it crossed above its 200D mavg (early April).
Since then, the best strategy has been to stay long. #Hodl
— Thomas Lee (@fundstrat) June 17, 2019
The weekend prior to the BTC price rally on April 2, several analysts had suggested that a breakout over this range would signal a commendable push upwards. In retrospect, “commendable” is a stark understatement and does no justice to the scale of the price rise.
The 200-day MA was placed at $4,623, as Bitcoin was trading under $4,100 and as the bulls struck the market, the moving average was broken, alongside the resistance of $4,200. Within hours of these two levels being left in BTC’s wake, $5,000 was passed. According to Lee, this 200MA breach indicated a BTC breakout, one that has not only failed to slow down, but looks to get stronger with every passing week.
Bitcoin was not satisfied with the passing of the 200-day MA however, and less than 20 days after the monumental event, another important mark was surpassed. On April 22, the cryptocurrency entered its “Golden Cross,” after the 50-day MA overtook the 200-day MA. According to many analysts, this was the final nail in the coffin for the “crypto-winter,” with only spring on the horizon.