The recent surge in bitcoin price over the weekend took many market observers by surprise. The alpha coin marked a 1.5% gain in the last 24 hours, taking the value of bitcoin above the psychologically important threshold of $30,000, which also serves as a key resistance level.
At the time of writing, bitcoin–btc-price-to-hit-the-70k-level-in-the-next-6-months-analyst-explains-why/” target=”_blank” rel=”noopener nofollow”>bitcoin was trading at $30,154, an increase of 12% in the last seven days, data from crypto market tracker Coingecko shows. On October 16, the cryptocurrency briefly spiked to around $30,000 on Binance due to false reports of an approved spot bitcoin ETF. However, as soon as the truth about these reports came to light, the market quickly corrected itself.
Just two days later, bitcoin rose again to $30,000, but struggled to maintain this crucial level, facing resistance and fluctuations. These multiple attempts indicate the importance of the $30,000 price as a key battleground for bitcoin‘s short-term price movements.
Influential factors behind bitcoin‘s recent surge
The recent increase in The price of bitcoin It has no clear cause, but is likely driven by market optimism surrounding the potential approval of a bitcoin ETF by the US Securities and Exchange Commission.
This optimism is based on the belief that the approval of a bitcoin ETF would offer more accessible and regulated exposure to the cryptocurrency, attracting institutional and retail investors and further legitimizing the asset within traditional finance. The anticipation of this regulatory milestone is a key factor influencing the price of bitcoin today.
Jebb, a prominent crypto analyst, has examined the 200-week simple moving average in bitcoin trading. Jebb highlighted the importance of this moving average as a prediction of future bitcoin bull markets, based on his previous record.
BTCUSD nearing the $30K territory. Chart: TradingView.com
This moving average, he noted, has consistently proven to be a vital and insightful indicator, offering valuable insights into the complex dynamics of bitcoin price movements.
In the video, Jebb dispelled the myth that bitcoin‘s price fell sharply below the 200-week moving average in 2022, rendering it obsolete. He maintained that external variables, such as the artificially inflated price of bitcoin in 2021 by the Federal Reserve, had an impact on the decline.
He emphasized that these exceptional circumstances played a pivotal role in the 2022 downturn, underscoring that the 200-week moving average remains a valuable metric for predicting bitcoin‘s future trajectories, given the return to more typical market conditions.
Bullish signs for the future of bitcoin
According to Jebb’s analysis, in the absence of US central bank intervention, the price of bitcoin would have seen a rise to around $50,000 instead of $70,000, followed by a correction to around $20,000 instead of $27,000. Dollars.
All of these criteria support a bitcoin bull market. Jebb predicted that bitcoin could rise between $50,000 and $70,000 in six months based on his findings. This estimate gives an additional boost to bitcoin‘s price growth potential by taking into account the April 2024 halving event.
Additionally, the analyst presented a wide range of technical indicators that strengthen the outlook for an imminent bull market for bitcoin. Among these indicators, he drew attention to the moving average divergence and convergence (MACD) of the weekly chart, the relative strength index (RSI) and Lux Algo signals.
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