The last time Bitcoin closed above the 100 DMA, the price nearly doubled.
Traders are hoping for another rally as green returns to the overall crypto market on the weekly chart. Interestingly, the 50 DMA suggests that BTC could be in a good position for more gains.
Bitcoin rallied yesterday to $45,500 for the first time since Jan. 5, while the crypto market cap revisited the $2 trillion mark.
Although BTC failed to hold $45,000 and is currently trading below $44,000, the leading cryptocurrency flashed an indicator that last surfaced before a major rally last year.
On Feb. 7, BTC closed above the 100-day DMA, an indicator that the asset is looking good again.
The DMA is a type of moving average (MA) indicator that helps identify trends. If the price closes above the DMA, which is the moving average, it could be a sign of an uptrend and vice versa.
The last time Bitcoin closed above the 100 DMA was in July, just before Bitcoin surged almost 100% from around $35,000.
https://twitter.com/SmartContracter/status/1490889267740311552?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener“Time Finally BTC a good close above the 100 DMA was in July at the start of a nearly 100% rally so it’s looking good. gradually looking good again IMO”.
Vijay Ayyar, Asia Pacific manager at Luno Pte, believes the next stop for the top cryptocurrency is $46,000-$47,000.
“Bitcoin has broken several key levels and downtrend lines here over the past few days. The price is showing signs of rising. It is capped by the 50 DMA and must close above it. The next stop is $46,000 to $47,000.”
The InvestAnswers host has just revealed a scenario where Bitcoin could triple its current value.
analyst said Many people store bitcoin on exchanges for flexible trading purposes, even though they don’t plan to sell it just yet.
He noted that a sudden increase in buying pressure can create a supply shock and help Bitcoin’s value become parabolic.
“To cause a major macro shock, you need someone trying to buy 100,000 to 200,000 bitcoins in a week or two.
This would triple the market in a very short time. That’s all it takes because a lot of people actually hold their cryptos on exchanges, but they don’t want to sell them just yet…
There are many people like me who are not ready to sell. So, the metrics available for sale on exchanges vary widely. But everyone has their desired price and the higher we get, the more sellers there are. But if someone again tries to buy 100,000 to 200,000 over a two week period, the price triples overnight and that can happen.”
Bitcoin is trading at $43,485 at press time. The leading cryptocurrency by market cap is down more than 2% in the last 24 hours and is up 12% from its price level a week ago.
Source: Trade View
At current prices, a 100,000 BTC purchase would be worth nearly $4.4 billion.
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