Technical Analysis

Crypto bulls try to encourage buyers

Bitcoin has
added 1.4% in the last 24 hours, reaching the 16.7K level. It is a new attempt
to test the 50-day moving average on a general lull and an effort by the bulls
to paint a more optimistic technical picture with less strength while liquidity
remains depressed.

Table of Contents

Bitcoin Technical

This tactic
is already successful, as the total capitalisation exceeds 800 billion (+1.6%
in 24 hours).

The current
dynamic looks like an attempt to draw a line under a bearish 2022. We also note
that the December lows were higher than the November lows. But to argue for a
reversal, it is more prudent to wait for a renewal of the local highs rather
than relying only on the waning declines.

Closing the
day above the 50-day average (around 16750) might give new momentum to the
upside, and consolidation above 17K might be notable news in the quiet
information flow and serve as a decoy for the bulls.

At the same
time, we recall that since July 2022, overcoming the 50-day average served as a
trigger for selling on impressive volumes, and bitcoin soon renewed lows.

This article was written by FxPro’s Senior Market Analyst Alex

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